Fujairah Building Industries P.J.S.C. and its subsidiaries ... Building Industries P.J.S.C. and its subsidiaries (the "Group") Fujairah - United Arab Emirates Table of contents Pages

Fujairah - United Arab Emirates

Fujairah Building Industries P.J.S.C.

and its subsidiaries (the "Group")

For the nine month period ended September 30, 2017

(unaudited)

Independent auditor's review report and

condensed consolidated interim financial information

Fujairah Building Industries P.J.S.C. and its subsidiaries (the "Group")


Table of contents

Pages

General information 1

Report of the Board of Directors 2

Independent auditor's report on review of condensed consolidated interim financial information 3

Condensed consolidated interim statement of financial position 4

Condensed consolidated interim statement of profit or loss 5

Condensed consolidated interim statement of other comprehensive income 6

Condensed consolidated interim statement of changes in shareholders' equity 7

Condensed consolidated interim statement of cash flows 8

Notes to the condensed consolidated interim financial information 9 - 21



General information

Principal Office Address : P. O. Box: 383


T: +971 9 222 2051

F: +971 9 222 7314

Email: [email protected]

Website : www.fbifuj.ae

The Auditors : Horwath Mak

P. O. Box: 1650


1

http://www.fbifuj.ae/



Condensed consolidated interim statement of changes in shareholders' equity

For the nine month period ended September 30, 2017 (Unaudited)

Balance as at December 31, 2015 (Audited) 135,987,500 28,348,713 30,367,248 29,201,318 223,904,779

Profit for the period - - - 11,804,450 11,804,450

- - 3,849,893 - 3,849,893

Total comprehensive income - - 3,849,893 11,804,450 15,654,343

-

135,987,500 28,348,713 34,217,141 41,005,768 239,559,122

Balance as at December 31, 2016 (Audited) 135,987,500 29,849,594 34,550,705 42,709,242 243,097,041

Profit for the period - - - 20,395,603 20,395,603

- - (6,213,981) - (6,213,981)

- - - (570,000) (570,000)

Total comprehensive income - - (6,213,981) 19,825,603 13,611,622

Dividends - - - (6,799,375) (6,799,375)

135,987,500 29,849,594 28,336,724 55,735,470 249,909,288

The accompanying notes form an integral part of this condensed consolidated interim financial information.

The review report of the auditors is set out on page 3.

Remuneration to the Board of Directors

Balance as at September 30, 2017 (Unaudited)

Change in fair value of available-for-sale investments

Change in fair value of available-for-sale investments

Total

shareholders'

equity

Balance as at September 30, 2016 (Unaudited)

Investments

revaluation

reserve

Retained

earnings

(In Arab Emirates Dirhams)

Share capital

Statutory

reserve

7



Condensed consolidated interim statement of cash flows



Jan 01, 2017 to Jan 01, 2016 to

Sep 30, 2017 Sep 30, 2016

(9 months) (9 months)

(Unaudited) (Unaudited)

Cash flows from operating activities

Profit for the period from continuing operations 22,167,452 15,579,460

(Loss) for the period from discontinued operations (1,771,849) (3,775,010)

Profit for the period 20,395,603 11,804,450

Adjustments for:

(Gain) on disposal of property, plant and equipment 11,000 (243,698)

Impairment of property, plant and equipment 141,680 1,252,569

23,890,829 23,304,092

Allowance for slow-moving inventories 5,979,154 4,085,589

2,967,844 1,927,050

848,795 935,683

Finance costs 3,301,742 2,986,395

Operating profit before changes in operating assets and liabilities 57,536,647 46,052,130

(Increase) / decrease in current assets

Inventories (2,405,544) 14,025,600

Trade receivables 5,307,329 (6,116,163)

Advances, deposits and other receivables (1,817,293) (463,190)

Increase / (decrease) in current liabilities

Trade and other payables (9,672,172) (20,093)

Cash generated from operations 48,948,967 53,478,284

Employees' end-of-service benefits paid (1,752,491) (746,929)

Finance costs paid (3,677,691) (3,791,113)

Net cash from operating activities 43,518,785 48,940,242

Cash flows from investing activities

Purchase of available-for-sale investments - (64,355)

Fixed deposits (12,000,000) -

Acquisition of property, plant and equipment (9,749,917) (22,236,380)

Proceeds from disposal of property, plant and equipment (11,000) 412,164

Net cash (used in) investing activities (21,760,917) (21,888,571)

Cash flows from financing activities

Proceeds from term loans 3,000,000 15,000,000

(Repayment) of term loans (17,795,625) (20,162,908)

(Repayment) of other bank borrowings - net (3,706,525) (10,197,691)

(Repayment) of finance lease liability - (336,694)

Dividends (6,799,375) -

Remuneration paid to the Board of Directors (570,000) -

Net cash (used in) financing activities (25,871,525) (15,697,293)

Net (decrease)/increase in cash and cash equivalents (4,113,657) 11,354,378

Cash and cash equivalents, beginning of the period 18,214,151 4,306,933

Cash and cash equivalents, end of the period 14,100,494 15,661,311

Represented by:

Cash in hand 165,670 218,557

Bank balances - current accounts 13,934,824 15,442,754

14,100,494 15,661,311

The review report of the auditors is set out on page 3.

Provision for employees' end of service benefits

Allowance for doubtful debts

Depreciation on property, plant and equipment

The accompanying notes form an integral part of this condensed consolidated interim financial information.

8



Notes to the condensed consolidated interim financial information


1 Legal status and business activities

1.1

1.2

1.3

1.4

1.5

2 Basis of preparation and consolidation

2.1 Basis of preparation

This condensed consolidated interim financial information has been prepared in accordance with International

Accounting Standard 34 "Interim Financial Reporting" and is presented in Arab Emirates Dirhams (AED) which is

the functional currency of the Group.

This condensed consolidated interim financial information has been prepared on the historical cost basis except for

certain financial instruments that are measured at fair values, and assets and liabilities of a subsidiary, M/s. Emirates

Ceramic Factory, that are measured at realisable/settlement values as explained in note 2.3.

M/s. Fujairah Building Industries P.J.S.C. (the “Entity”) was incorporated as a public joint stock company

in the Emirate of Fujairah, United Arab Emirates, by an Emiri Decree issued by His Highness, The Ruler of

Fujairah. The Entity’s ordinary shares are listed on the Abu Dhabi Securities Exchange.

The Entity and its subsidiaries (note 2.2) are collectively referred to as the “Group”.

The principal activities of the Group are unchanged since the previous year and comprise production of

concrete blocks, interlocks, kerbstones, ceramic tiles, rockwool insulation materials, marble products, terrazzo

tiles and quarry products.

The registered address of the Entity is P.O. Box: 383, Fujairah - United Arab Emirates.

This condensed consolidated interim financial information incorporates the operating results of the

Commercial license no. 80003 of the Entity and the industrial licenses (note 2.2) of the subsidairies issued by

the municipalities in the Emirate of Fujairah.

The consolidated result for the nine month period ended September 30, 2017 is not necessarily indicative of the

consolidated result that may be expected for the financial year ending December 31, 2017.

In preparing this condensed consolidated interim financial information, the significant judgements made by

management in applying the accounting policies and the key sources of estimation uncertainty were the same as

those that were applied to the audited consolidated financial statements for the year ended December 31, 2016.

The accounting policies and methods of computation adopted in preparing this condensed consolidated interim

financial information are consistent with those used in the audited consolidated financial statements for the year

ended December 31, 2016.

All aspects of the financial risk management objectives and policies are consistent with that disclosed in the audited

consolidated financial statements for the year ended December 31, 2016.

This condensed consolidated interim financial information does not include all the information required for full

annual consolidated financial statements and should be read in conjunction with the audited consolidated financial

statements for the year ended December 31, 2016.

The preparation of this condensed consolidated interim financial information requires the management to make

judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts

of assets, liabilities, incomes and expenses. Actual results may differ from these estimates.

9





2 Basis of preparation and consolidation (continued)

2.2 Basis of consolidation

Sl.

No.

Industrial

license no.

Percentage of

ownership

Acquisition

year

Principal

product

1 80004 100% 1978Quarry

products

2 80095 100% 1978

Blocks,

interlocks and

kerbstones

3 80007 100% 2006 Ceramic tiles

4 80008 100% 2006

Rockwool

insulation

materials

5 3923 100% 2007

Marble

products and

terrazzo tiles

2.3 Discontinued operations

M/s. Fujairah Concrete

ProductsFujairah - U.A.E.

Fujairah - U.A.E.

During May 2015, management decided to cease production and completely shutdown the plant and machinery to

curtail losses of M/s. Emirates Ceramic Factory, a subsidiary. In the meeting of the Board of Directors held on

November 5, 2015, it was resolved that the plant and machinery be designated as held for sale.

In view of the above, as the going concern assumption is not valid for M/s. Emirates Ceramic Factory, its assets and

liabilities are included in this condensed consolidated interim financial information on the basis of the accounting

convention of realisable/settlement values whereby assets are carried at amount of cash and cash equivalents that

could currently be obtained by selling the assets in an orderly disposal and liabilities are carried at the undiscounted

amounts of cash or cash equivalents expected to be paid to satisfy the liabilities in the normal course of business.

Realisable/settlement values of assets and liabilities are based on the management's best estimate considering any

impairment to the historical cost and presented as current assets and current liabilities.

Property, plant and equipment of M/s. Emirates Ceramic Factory, held for sale since November 5, 2015, are

measured at lower of carrying amount and fair value less cost to sell. All operations of M/s. Emirates Ceramic

Factory are treated as discontinued operations (note 24) as per International Financial Reporting Standards.

Fujairah - U.A.E.

M/s. Fujairah

Rockwool Factory

M/s. Emirates Ceramic

Factory

Fujairah - U.A.E.

Name of subsidiaryPlace of

incorporation

M/s. Fujairah National

Quarry

A subsidiary is consolidated from the acquisition date, which is the date the Entity gains control over the subsidiary,

and lasts till the Entity loses that control. Control usually occurs when the Entity has the power to govern the

financial and operating policies of the subsidiary for the purpose of benefiting from its activities. During the current

period and the prior year, there were neither acquisitions nor loss of control and the percentage of ownership in the

subsidiaries remained same.

M/s. Fujairah Marble

and Tiles FactoryFujairah - U.A.E.

All significant transactions and balances between the Entity and its subsidiaries are eliminated.

This condensed consolidated interim financial information comprises of the operations of the Entity and its

subsidiaries detailed below:.

10





3 Significant accounting policies

Available-for-sale investments

Available-for-sale investments are initially measured at fair value plus transactions costs, if any. After initial

recognition, available-for-sale investments are measured at fair value unless fair value is undeterminable.

Available-for-sale investments are non-derivatives that are either designated in this category or not classified in any

of the other categories are stated at fair value or cost at the end of each reporting period.

Available-for-sale investments that do not have a quoted market price in an active market and whose fair value

cannot be measured reliably are measured at cost less any identified impairment losses at the end of each reporting

period.

Gains and losses arising from the changes in the fair value are recognised directly in equity in the investments

revaluation reserve with the exception of impairment losses.

Where the investment is disposed off or is determined to be impaired, the cumulative gain or loss previously

recognised in the investments revaluation reserve is included in profit or loss.

Dividends on available-for-sale equity instruments are recognised in profit or loss when the Group's right to receive

the dividends is established.

11






4 Property, plant and equipment

Cost

As at December 31, 2015 (Audited) 99,429,029 271,770,877 60,866,486 15,594,936 25,525,201 473,186,529

Addition during the year 81,250 648,218 5,864,055 391,172 27,224,899 34,209,594

Transferred from capital work-in-progress 2,638,877 37,884,674 418,710 - (40,942,261) -

Disposal during the year - (4,065,824) (3,058,300) (7,154) - (7,131,278)

Impairment during the year - - - (2,264,917) - (2,264,917)


Addition during the period 14,650 324,036 7,000 130,930 9,534,400 10,011,016

Transferred from capital work-in-progress 149,000 2,799,951 - 45,605 (2,994,556) -

Disposal during the period - - (98,500) - - (98,500)

Impairment during the period - - - - (141,680) (141,680)

As at September 30, 2017 (Unaudited) 102,312,806 312,392,057 63,999,451 13,907,097 18,206,003 510,817,414

Accumulated depreciation

As at December 31, 2015 (Audited) 50,347,653 164,846,880 46,814,693 12,129,442 - 274,138,668

Charge for the year 6,208,991 20,454,634 4,170,124 1,768,672 - 32,602,421

Eliminated on disposal during the year - (4,065,824) (2,945,132) (2,856) - (7,013,812)

Eliminated on impairment during the year - - - (1,624,215) - (1,624,215)

- 3,030,125 - 7,369 - 3,037,494

As at December 31, 2016 (Audited) 56,556,644 184,265,815 48,039,685 12,278,412 - 301,140,556

Charge for the period 4,602,102 15,635,822 2,958,668 694,237 - 23,890,829

Eliminated on disposal during the period - - (98,500) - - (98,500)

As at September 30, 2017 (Unaudited) 61,158,746 199,901,637 50,899,853 12,972,649 - 324,932,885

Carrying value

As at September 30, 2017 (Unaudited) 41,154,060 112,490,420 13,099,598 934,448 18,206,003 185,884,529


Notes:

- Buildings are constructed on plots of land obtained on lease from the Government of Fujairah and renewed on an annual basis.

- Certain vehicles having carrying value of AED 1,983,164 (December 31, 2016: 2,148,164) are hypothecated against a bank loan (note 17).

-

- Finance cost capitalised during the period amounted AED 261,099 (September 30, 2016 : 374,317).

3,046,650

Reclassification to property, plant and equipment - held for sale

Capital work-in-progress at the end of the reporting period represents plant and machinery being installed/modified at various subsidiaries.

Reclassification from property, plant and equipment - held for sale - 3,030,125 - 16,525 -

Total

Buildings and

leasehold

improvements

Plant and

machinery

Heavy equipment

and light vehicles

Furniture and

fixtures

Capital work-in-

progress

12


Sep 30, 2017 Dec 31, 2016

(Unaudited) (Audited)

5 Available-for-sale investments

Equity securities : Quoted 35,476,799 41,690,780

: Unquoted 1,720,000 1,720,000

37,196,799 43,410,780

Balance at the beginning of the period/year 43,410,780 39,162,968

Acquired during the period/year - 64,355

Change in fair value (note 15) (6,213,981) 4,183,457

Balance at the end of the period/year 37,196,799 43,410,780

Comprising:

Non-current portion 36,589,847 42,894,808

Current portion (note 2.3) 606,952 515,972

37,196,799 43,410,780

All available-for-sale investments represent investments in local companies in the United Arab Emirates.

6 Property, plant and equipment - held for sale

740,501 59,004,067

- (3,046,650)

- (235,784)

Impairment during the period/year - (1,253,174)

Disposal during the period/year - (53,727,958)

740,501 740,501

Balance at the beginning of the period/year 730,663 56,302,952

- (3,037,494)

- (235,784)

Eliminated on impairment during the period/year - (607,919)

Eliminated on disposal during the period/year - (51,691,092)

730,663 730,663

Carrying value 9,838 9,838

7 Inventories

Continuing operations

Raw materials 5,200,626 6,078,084

Finished goods 44,573,465 38,689,594

Spare parts 25,728,302 25,173,265

Consumables 3,269,144 4,488,658

Inventories in transit - 32,820

Less: Allowance for slow-moving items (21,307,493) (16,452,895)

(a) 57,464,044 58,009,526

Discontinued operations

Finished goods 10,510,738 12,414,310

Spare parts 2,434,117 2,434,117

Consumables 52,937 52,937

Less: Allowance for slow-moving items (7,214,324) (6,089,768)

(b) 5,783,468 8,811,596

(a)+(b) 63,247,512 66,821,122

Cost

Balance at the beginning of the period/year

Accumulated depreciation





Movement in available-for-sale investments is as follows:

Transferred to inventory of continuing operations

Transferred to inventory of continuing operations

Transferred to property, plant and equipment of continuing operations

Transferred to property, plant and equipment of continuing operations

13






Sep 30, 2017 Dec 31, 2016


7 Inventories (continued)

Allowance for slow-moving inventories


Charge during the period/year - continuing operations (note 23) 4,854,598 3,623,063

Charge during the period/year - discontinued operations 1,124,556 1,259,281

Written off during the period/year - (1,931,885)


8 Trade receivables

Trade receivables 70,837,083 76,822,455

Less: Allowance for doubtful debts (17,076,867) (14,787,066)

53,760,216 62,035,389


Charge during the period/year - continuing operations (note 23) 2,967,844 5,669,088

Charge during the period/year - discontinued operations - 357,853

Written-off during the period/year (678,043) (1,833,583)

Reversal during the period/year - (507,594)


9 Advances, deposits and other receivables

Prepayments 3,128,146 2,447,602

Advances to suppliers 2,286,482 1,369,152

Other receivables 501,496 282,077

5,916,124 4,098,831

10 Fixed deposits

Fixed deposits with bank 27,000,000 15,000,000

11 Cash and bank balances

Cash in hand 165,670 138,703

Bank balances - current accounts 13,934,824 18,075,448

14,100,494 18,214,151

Bank balances are maintained with banks registered in the United Arab Emirates.

12 Share capital

Number of shares (Nos.) 135,987,500 135,987,500

Nominal value per share (AED) 1 1

Issued and fully paid-up share capital (AED) 135,987,500 135,987,500

Movement in allowance for doubtful debts is as follows:

Movement in allowance for slow-moving inventories is as follows:

Fixed deposit amounting to AED 7,000,000 (December 31, 2016: AED 7,000,000) is under lien against credit facilities

(note 17).

14






Jul 01, 2017 to Jul 01, 2016 to Jan 01, 2017 to Jan 01, 2016 to

Sep 30, 2017 Sep 30, 2016 Sep 30, 2017 Sep 30, 2016

(3 months) (3 months) (9 months) (9 months)

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

13 Basic and diluted earnings per share

Continuing operations

(AED) 7,172,168 3,227,255 22,167,452 15,579,460

(Nos.) 135,987,500 135,987,500 135,987,500 135,987,500

(U.A.E. Fils) 5.27 2.37 16.30 11.46

Discontinued operations

(AED) (112,804) (2,112,655) (1,771,849) (3,775,010)

Weighted average number of shares (Nos.) 135,987,500 135,987,500 135,987,500 135,987,500

(Loss) per share (U.A.E. Fils) (0.08) (1.55) (1.30) (2.78)

Sep 30, 2017 Dec 31, 2016


14 Statutory reserve


Transferred from net profit (note 16) - 1,500,881


15 Investments revaluation reserve


Change in fair value of available-for-sale investments (note 5) (6,213,981) 4,183,457


16 Retained earnings


Profit for the period/year 20,395,603 15,008,805

Transferred to statutory reserve (note 14) - (1,500,881)

Dividends* (6,799,375) -

Remuneration to the Board of Directors (570,000) -


17 Bank borrowings

(a) Term loans


Received during the period/year 3,000,000 15,000,000

Repaid during the period/year (17,795,625) (26,610,060)


Earnings per share

Profit for the period from continuing

operations

Weighted average number of shares

(Loss) for the period from

discontinued operations

No transfer was effected at the end of the reporting period as this will be based on the result for the financial year.

According to the Articles of Association of the Entity and Article 239 of the UAE Federal Law No. (2) of 2015, the Entity

has established a statutory reserve by appropriation of 10% of the profit for each year. The shareholders' general assembly

may stop appropriations to the statutory reserve once its balance reaches 50% of the paid-up share capital. This reserve is

not available for distribution except in the circumstances stipulated by law.

*During the period, a cash dividend of 5% (2016: nil) of the paid-up share capital, amounting to AED 6,799,375 (2016:

nil) was paid as approved in the shareholders’ general assembly held on April 13, 2017.

15






Sep 30, 2017 Dec 31, 2016


17 Bank borrowings (continued)

(a) Term loans (continued)

Comprising:


Current portion 22,529,083 26,842,902

55,041,125 69,836,750

Break-up of term loans

Term loan 1 - 2,818,843

Term loan 2 24,712,042 39,112,042

Term loan 3 329,083 905,865

Term loan 4 30,000,000 27,000,000 55,041,125 69,836,750

Term loan 1

Term loan 2

Term loan 3

Term loan 4

Sep 30, 2017 Dec 31, 2016


(b) Due to banks

Bank overdrafts 20,029,541 21,454,502

Trust receipts - 2,281,564

20,029,541 23,736,066

Bank borrowings - non-current portion

Term loans (refer a) 32,512,042 42,993,848

Bank borrowings - current portion

Term loans (refer a) 22,529,083 26,842,902

Due to banks (refer b) 20,029,541 23,736,066

42,558,624 50,578,968

Total bank borrowings 75,070,666 93,572,816

Bank borrowings are secured by:-

i)

ii) Assignment of certain insurance policies, covering buildings, plant and machinery, in favour of the bank.

iii) Lien over fixed deposit of AED 7,000,000 (note 10).

iv) Hypothecation of certain vehicles (note 4).

During 2008, the Group was sanctioned a long term loan by a local bank for AED 50 million to finance the setting up of

the marble and tiles factory. This loan is scheduled to be repaid in monthly installments ranging from AED 400,000 to

AED 600,000, inclusive of interest, commenced in May 2011 and ending in May 2017.

During 2008, the Group was sanctioned a medium term loan by a local bank for AED 120 million to finance the

construction of a rockwool factory and installation of new plant and machinery therein. This loan was rescheduled in July

2014 to be repaid in monthly installments of AED 1.6 million, exclusive of interest, commenced in August 2014 and

ending in January 2019.

During 2015, the Group was sanctioned a revolving vehicle loan facility by a local bank for AED 3 million to part finance

the purchase of motor vehicles, of which only AED 2,244,000 was drawn. This amount is scheduled to be repaid in 36

equal monthly installments of AED 66,213, inclusive of interest, commenced in March 2015 and ending in February 2018.

During 2015, the Group was sanctioned a medium term loan by a local bank for AED 89 million to finance the installation

of plant and machinery and construction of labour camp. Of the sanctioned amount, AED 30 million was drawn down upto

September 30, 2017. The drawn down amount is scheduled to be repaid in 20 equal quarterly installments of AED 1.50

million, exclusive of interest, commencing in January 2018 and ending in October 2022.

Corporate guarantee of the Entity.

Interest calculated on monthly basis, at commercial rate, is paid on the due dates.

16






Sep 30, 2017 Dec 31, 2016


18 Employees' end of service benefits


Add: Charge for the period/year 848,795 1,217,599

Less: Paid during the period/year (1,752,491) (1,265,282)


Comprising:


Current portion (note 2.3) 160,331 426,924

11,674,326 12,578,022

19 Trade and other payables

Trade payables 36,256,420 45,256,494

Advances received from customers 1,591,149 3,960,369

Accruals 6,785,466 5,331,527

Staff provisions 5,498,061 5,254,878

Unclaimed dividends 29,963 29,963

Interest payable 300,173 415,023

50,461,232 60,248,254

20 Finance lease liability

Balance at the beginning of the period/year - 336,694

Paid during the period/year - (336,694)

Balance at the end of the period/year - -


Sep 30, 2017 Sep 30, 2016 Sep 30, 2017 Sep 30, 2016



21 Revenue

Sales: Within U.A.E. 56,276,994 51,809,054 169,947,795 168,174,791

: Outside U.A.E. 2,023,650 3,908,793 6,536,020 11,461,743

58,300,644 55,717,847 176,483,815 179,636,534

22 Selling and distribution expenses

Salaries and other related benefits 2,336,393 2,574,627 7,144,212 7,682,092

Vehicle expenses 1,335,415 1,737,883 4,102,228 5,091,961

Rent 839,670 414,797 2,558,020 2,510,976

Insurance 76,662 96,556 264,467 270,648

Telephone and communication 53,095 63,735 168,310 183,183

Advertisement and business promotion 287,388 691,559 1,040,893 1,720,326

Government fees on crusher sales 596,052 758,289 1,446,799 2,122,755

Hired transportation 470,971 489,427 1,568,501 2,187,303

Depreciation on property, plant and equipment 579,512 582,401 1,514,864 2,017,324

Legal, visa, professional and related expenses 105,859 82,720 333,269 481,515

Others 385,920 121,074 926,873 525,100

7,066,937 7,613,068 21,068,436 24,793,183

17







Sep 30, 2017 Sep 30, 2016 Sep 30, 2017 Sep 30, 2016



23 Administrative expenses

Salaries and related benefits 3,700,717 3,179,595 11,106,365 10,999,555

Vehicle expenses 86,371 91,732 329,349 346,756

Rent 169,623 168,495 505,608 500,856

Insurance 37,253 37,416 87,092 109,486

Legal, visa, professional and related expenses 194,050 412,247 663,229 937,373

Telephone and communication 201,880 145,116 397,684 377,037

Utilities 31,217 95,685 211,406 204,184

Depreciation on property, plant and equipment 1,019,697 635,097 2,578,546 2,115,933

Allowance for slow-moving inventories (note 7) 1,343,814 849,618 4,854,598 3,379,166

Allowance for doubtful debts (note 8) 989,994 737,500 2,967,844 1,685,669

Impairment of property, plant and equipment 19,500 - 141,680 557,282

Others 294,692 436,503 1,547,430 1,398,166

8,088,808 6,789,004 25,390,831 22,611,463

24 Discontinued operations


Sep 30, 2017 Sep 30, 2016 Sep 30, 2017 Sep 30, 2016



Revenue 334,890 261,213 1,569,385 2,539,112

Finished goods at the beginning of the period (10,898,425) (12,910,233) (12,414,310) (15,363,276)

Finished goods at the end of the period 10,510,738 12,626,859 10,510,738 12,626,859

Cost of sales (387,687) (283,374) (1,903,572) (2,736,417)

Gross (loss) (52,797) (22,161) (334,187) (197,305)

Selling and distribution expenses (62,039) (247,005) (247,677) (942,943)

Administrative expenses (26,558) (1,942,701) (1,261,301) (2,775,374)

Finance costs 12,592 (20,692) - (97,911)

Other income 15,998 119,904 71,316 238,523

(Loss) for the period from discontinued operations (112,804) (2,112,655) (1,771,849) (3,775,010)

Net cashflows from discontinued operations:

Operating activities 1,012,294 2,062,072

Investing activities - 727,146

Financing activities (411,285) (2,677,374)

Net increase in cash and cash equivalents 601,009 111,844

During May 2015, management decided to cease production and completely shutdown the plant and machinery to curtail

losses of M/s. Emirates Ceramic Factory, a subsidiary. In the meeting of the Board of Directors held on November 5,

2015, it was resolved that plant and machinery be designated as held for sale and to consider operations of the subsidiary

as discontinued operations (note 2.3).

18






25 Related party transactions

Sep 30, 2017 Dec 31, 2016


a) Balances due from related parties (included in trade receivables) 3,515,603 2,682,388

b) Balances due to related parties (included in trade and other payables) 1,625,569 3,023,775

No bank guarantees are received from or provided to related parties against balances due from/to them.

c) Transactions with related parties

The nature of significant related party transactions and the amounts involved were as follows:


Sep 30, 2017 Sep 30, 2016 Sep 30, 2017 Sep 30, 2016



Sales 1,962,324 1,545,578 5,978,744 9,349,637

Purchases 1,145,639 1,230,229 4,707,086 5,666,005

Management decides on the terms and conditions of the transactions and services received/rendered from/to related parties

as well as other charges, if applicable.

The Group enters into transactions with other entities that fall within the definition of a related party as contained in IAS

24 "Related Party Disclosures". Such transactions are in the normal course of business and at terms that correspond to

those on normal arms-length transactions with third parties. Related parties comprise entities under common ownership

and/or common management and control; their partners and key management personnel.

19






26 Business segments

Quarrying Manufacturing Other Eliminations

Total -

continuing

operations

Ceramic

products -

Discontinued

operations Eliminations

Total -

discontinued

operations Total

For the period ended

September 30, 2017

Revenue 18,283,338 168,181,284 - (9,980,807) 176,483,815 1,569,385 - 1,569,385 178,053,200

(Loss)/profit (1,954,823) 23,139,053 929,972 53,250 22,167,452 (1,771,849) - (1,771,849) 20,395,603

Depreciation 3,128,733 20,282,537 532,809 (53,250) 23,890,829 - - - 23,890,829

For the period ended

September 30, 2016

Revenue 25,472,392 162,837,961 - (8,673,819) 179,636,534 2,539,112 - 2,539,112 182,175,646

(Loss)/profit (146,790) 14,577,256 1,071,525 77,469 15,579,460 (3,467,798) (307,212) (3,775,010) 11,804,450

Depreciation 3,715,916 18,428,582 1,194,928 (35,334) 23,304,092 - - - 23,304,092

As at September 30, 2017

Total assets 40,083,306 329,587,447 272,715,263 (262,334,957) 380,051,059 7,064,453 - 7,064,453 387,115,512

Total liabilities 20,760,745 138,317,423 41,896,698 (64,143,296) 136,831,570 374,654 - 374,654 137,206,224

As at December 31, 2016

Total assets 43,766,316 338,415,714 266,256,356 (248,360,368) 400,078,018 9,418,115 - 9,418,115 409,496,133

Total liabilities 22,317,661 163,114,444 37,022,138 (57,644,984) 164,809,259 1,589,833 - 1,589,833 166,399,092

The Group has broadly four reportable segments, including discontinued operations, as discussed below, which are the Group's strategic business units which operate in different

sectors and are managed separately because of different strategies and are reported in a manner consistent with the internal reporting provided to the chief operating decision-

maker.

All operating segments' results are reviewed regularly by the Group's executive management to make decisions about resources to be allocated to the segment and assess its

performance, and for which discrete financial information is available.

Continuing operations Discontinued operations

20






27 Seasonality of results

28 Contingent liabilities

Sep 30, 2017 Dec 31, 2016


Letters of credit - 1,692,287

Letters of guarantee 2,700,000 1,700,000

29 Commitments

Sep 30, 2017 Dec 31, 2016


Commitments for installation of property, plant and equipment 8,765,332 12,117,870

30 Comparatives

Except for the above and ongoing business obligations which are under normal course of business against which no loss is

expected, there has been no other known contingent liability as of the reporting date.

Dividend on available-for-sale investments included under other income depends on market conditions, investment

activities of the Group and declaration of profits by investee companies, which are of seasonal nature. Accordingly,

consolidated result for the nine month period ended September 30, 2017 is not comparable to that relating to the

comparative period and is not indicative of the consolidated result that might be expected for the year ending December

31, 2017.

Certain amounts of the prior period/year were reclassified to conform to the current period's presentation. However, such

reclassification has no impact on the previously reported consolidated financial result or shareholders' equity.

Except for the above and ongoing business obligations which are under normal course of business against which no loss is

expected, there has been no other known commitment as of the reporting date.

21

Documents

Fujairah Building Industries P.J.S.C. and its subsidiaries ... Building Industries P.J.S.C. and its subsidiaries (the "Group") Fujairah - United Arab Emirates Table of contents Pages