FINANCIAL STATEMENTS for the year ended
31 December 2010

Interim financial information





Hotel, property and tourism development and investment
Commercial registration 1977
Board of Directors :

Qassim Mohamed Yousif Fakhroo (Chairman)
Thabia Abdulla Jasim Abdulla Al-Mannai (Vice Chairman) *
Adel Hussain Al-Maskati
Jalal Mohammed Yousuf Jalal
Anwar Abdulla Ghuloom *
Hala Ali Yateem
Waleed Ahmed Al Khaja
Chief Executive Officer : Abdulnabi Daylami
Offices :

Crowne Plaza, PO Box 5831, Diplomatic Area
Manama, Kingdom of Bahrain
Telephone: 17530530/17531122, Telefax: 17530867
E-Mail: bahtours@batelco.com.bh
Bankers : Ahli United Bank BSC
National Bank of Bahrain BSC
Bank of Bahrain and Kuwait BSC
Auditors : KPMG
     
    * Representatives of Social Insurance Organization





Independent auditors’ report on review of Financial Information

24 February 2011

To
The Board of Directors
Bahrain Tourism Company BSC

Report on the financial statements
We have audited the accompanying financial statements of Bahrain Tourism Company BSC (“the Company”), which comprise the statement of financial position as at 31 December 2010, the statements of comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Responsibility of the board of directors for the financial statements
The Board of Directors is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards and for such internal control as the board of directors determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.

Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with relevant ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 

Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2010, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Report on other regulatory requirements
As required by the Bahrain Commercial Companies Law , we report that the Company has maintained proper accounting records and the financial statements are in agreement therewith; the financial information contained in the directors’ report is consistent with the financial statements; we are not aware of any violations of the Bahrain Commercial Companies Law, or the terms of the Company’s memorandum and articles of association having occurred during the year that might have had a material adverse effect on the business of the Company or on its financial position; and satisfactory explanations and information have been provided to us by the management in response to all our requests.


STATEMENT OF FINANCIAL POSITION
as at 31 December 2010
     

 

31 December
2010 (reviewed)

31 December 2009
(audited)

CURRENT ASSETS

 

 

Cash and bank balances

1,182,849

989,622

Short-term bank deposits

8,357,559

7,797,025

Trade receivables

544,343

676,151

Inventory

76,639

72,936

Prepayments and other receivables

370,793

317,259

Total current assets

10,532,183

9,852,993
NON-CURRENT ASSETS

Available-for-sale investments

3,893,262

3,685,101

Investment in associate company

4,221,448

3,497,614

Investment property

1,202,998

1,249,062

Property and equipment

13,072,429

11,667,737

Total non-current assets

22,390,137

20,099,514

TOTAL ASSETS

32,922,320

29,952,507
CURRENT LIABILITIES

Trade payables

973,312

430,325

Accrued expenses and other payables

853,742

901,317

Dividends payable

280,488

255,024

Total current liabilities

2,107,542

1,586,666
NON-CURRENT LIABILITIES

Provision for employees’ leaving indemnity

293,164

267,330

TOTAL LIABILITIES

2,400,706

1,853,996

TOTAL NET ASSETS

30,521,614

28,098,511
EQUITY

Share capital

7,200,000

7,200,000

Treasury shares

(972,295)

(972,295)

Statutory reserve

3,600,000

3,600,000

Capital and development reserves

5,371,637

5,371,637

Fair value reserve

2,607,214

2,405,859

Retained earnings

12,715,058

10,493,310

 

 

 

TOTAL EQUITY

30,521,614

28,098,511


Qassim Mohamed Fakhroo
Chairman
Thabia Abdulla Jasim Abdulla Al-Mannai 
  Vice Chairman
Abdulnabi Daylami
Chief Executive Officer

STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2010
     
   
Bahraini dinars
 

2010

2009
       

HOTEL OPERATIONS

    

Revenue

8,332,801

7,883,390

Operating costs

(5,169,887)

(4,741,903)

PROFIT BEFORE DEPRECIATION

3,162,914

3,141,487

Depreciation of hotel and conference center

(1,065,479)

(1,157,418)

Profit from hotel operations

2,097,435

1,984,069
INVESTMENT ACTIVITIES

Dividend income

256,557

251,893

Provision for impairment of available for sale investments

(22,723)

(124,066)

Share of profit from associate

1,200,236

914,658

Property income

311,477

309,098

Depreciation of investment property

(51,444)

(50,358)

Other income

32,881

26,984

Foreign exchange gain / (loss)

(4,147)

11,918

Interest on short-term deposits

230,236

200,301

Profit from investment activities

1,953,073

1,540,428
General and administrative expenses (436,307) (364,854)
  (436,307) (364,854)

PROFIT FOR THE YEAR

3,614,201

3,159,643
     
Other comprehensive income

Fair value reserve (Available for sale investments):

    

   Net change in fair value

175,034

(309,674)

   Net amount transferred to income statement

22,723

124,066

Share in fair value reserve of associate

3,598

24,998
Transfer to income statement from fair value reserve of associate - 191,647

Total other comprehensive income for the year

201,355

31,037
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 3,815,556 3,190,680

Basic earnings per 100 fils share

55.0 fils

48.0 Fils


STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December 2010
Bahraini dinars

2010

 

Share capital

Treasury shares

Statutory reserve

Capital and development  reserves

Fair value reserve

Retained earnings

Total

At 1 January

7,200,000

(972,295)

3,600,000

5,371,637

2,405,859

10,493,310

28,098,511
Comprehensive income:

Profit for the period

-

-

-

-

-

3,614,201

3,614,201
Other comprehensive income

Fair value reserve (Available for sale investments):

 

 

 

 

 

 

 

  Net change in fair value

-

-

-

-

175,034

-

175,034

  Net amount transferred to income statement

-

-

-

-

22,723

-

22,723

Share in fair value reserve of associate

-

-

-

-

3,598

-

3,598

Total other comprehensive income for the year

-

-

-

-

201,355

-

201,355

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

 

-

 

-

 

-

 

-

201,355

3,614,201

3815,556
Purchase of treasury shares

-

-

-

-

-

-

-

Dividend declared (2009)

-

-

-

-

-

(1,313,453)

(1,313,453)

Charity donations declared (2009)

-

-

-

-

-

(15,000)

(15,000)

Directors' remuneration declared (2009)

-

-

-

-

-

(64,000)

(64,000)

Transfer to statutory reserve

-

-

-

-

-

 

 

At 31 December

7,200,000

(972,295)

3,600,000

5,371,637

2,607,214

12,715,058

30,521,614

 

 

STATEMENT OF CHANGES IN EQUITY
for the nine months ended 30 September 2010
Bahraini dinars

2009

 

Share capital

Treasury shares

Statutory reserve

Capital and development  reserves

Fair value reserve

Retained earnings

Total

At 1 January

7,200,000

(844,008)

3,241,705

5,729,932

2,374,822

8,733,986

26,436,437
Comprehensive income:

Profit for the year

-

-

-

-

-

3,159,643

3,159,643
Other comprehensive income

Fair value reserve (Available for sale investments):

 

 

 

 

 

 

 

  Net change in fair value

-

-

-

-

(309,674)

-

(309,674)

  Net amount transferred to income statement

-

-

-

-

124,066

-

124,066
Share in fair value reserve of associate

-

-

-

-

24,998

 -

24,998

Transfer to income statement from fair value reserve of associate

-

-

-

-

191,647

-

191,647

Total other comprehensive income for the year

 

-

-

-

-

31,037

-

31,037

Total comprehensive income for the YEAR

-

-

-

-

31,037

3,159,643

3,190,680

Purchase of treasury shares

-

(128,287)

-

-

-

-

(128,287)

Dividend declared (2008)

-

-

-

-

-

(1,321,319)

(1,321,319)

Charity donations approved (2008)

-

-

-

-

-

(15,000)

(15,000)

Directors' remuneration declared (2008)

-

-

-

-

-

(64,000)

(64,000)

Transfer to statutory reserve

-

-

358,295

(358,295)

-

-

-

At 31 December

7,200,000

(972,295)

3,600,000

5,371,637

2,405,859

10,493,310

28,098,511

STATEMENT OF CASH FLOWS
for the year ended 31 December 2010
     
 
Bahraini dinars

 

2010

2009

 

 

 
OPERATING ACTIVITIES

Cash received from customers

8,453,443

8,113,595

Rent received

305,060

343,640

Payment to suppliers

(1,770,384)

(1,009,740)

Staff salaries and related costs

(1,196,506)

(1,413,057)

Overhead expenses

(2,790,326)

(2,985,330)

Cash flows from operating activities

3,001,287

3,049,108
INVESTING ACTIVITIES

Interest received

232,058

200,301

Dividend received

736,557

551,893
Other receipts 32,881 26,984
Acquisitions of available-for-sale investments (52,540) -
Proceeds from redemption of available-for-sale investments 18,153 -

Capital expenditure on hotel

(1,916,633)

(890,602)

Cash flows from investing activities

(949,524)

(111,424)
FINANCING ACTIVITIES

Dividends paid

(1,288,002)

(1,313,051)

Charity paid

(10,000)

(51,504)

Purchase of treasury shares

-

(128,287)

Cash flows from financing activities

(1,298,002)

(1,492,842)
     

TOTAL NET CASH INFLOW DURING THE YEAR

753,761

1,444,842

CASH AND CASH EQUIVALENTS at beginning of year

8,786,647

7,341,805

CASH AND CASH EQUIVALENTS at 31 December

9,540,408

8,786,647

CASH AND CASH EQUIVALENTS per statement of financial position:

 

 

Cash and bank balances

1,182,849

989,622

Short-term bank deposits

8,357,559

7,797,025

 

 

 

 

9,540,408

8,786,647
 
  
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