21st Nov 2006 09:36
Paints and Chemical Industries Co.21 November 2006 Paints and Chemical Industries Company S.A.E. The Consolidated Financial Statements Together with Auditor's Report As of September 30, 2006 Review Report to the Board of Director of Paints and Chemical Industries CompanyS.A.E. We have reviewed the accompanying consolidated balance sheet of Paints andChemical Industries Company as at 30 September 2006, and the related statements of consolidated income, cash flows and change in equity for the period then ended. These financial statements are the responsibility of the company's management. Our responsibility is to issue a report on these financial statements based on our review. We conducted our review in accordance with the Egyptian Standard on Auditingapplicable to review engagements. This standard requires that we plan andperform the review to obtain moderate assurance that the financial statementsare free of material misstatement. A review is limited primarily to inquiries ofcompany personal and analytical procedures applied to financial data and thusprovides less assurance than an audit. We have not performed an audit and,accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believethat the accompanying consolidated financial statements do not give a true andfair view in all material respects in accordance with Egyptian AccountingStandards. Cairo, November 15, 2006 Kamel M. Saleh ACAF.E.S.A.A (RAA 8510)SBA-DELOITTE Paints and Chemical Industries Company S.A.E. (Pachin) Notes to the Financial Statements For the Period Ended September 30, 2006 1. Group Background Paints and Chemical Industries Company S.A.E. (PACHIN) The Company is anEgyptian Joint Stock Company. Following the sale by the Holding Company forChemical Industries for part of its share in the company via a GDR offer, itsshare in the company has reduced to less than 50 %, and the company has becomesubject to the Companies Law No. 159 for 1981. The objective of the company is to manufacture various kinds of paints,varnishes, printing inks, animal extract products and related products, inaddition to purchasing and dividing land for the purpose of using or reselling,and performing specialized construction works. El-Obour for Paints and Chemicals Industries Company S.A.E is an Egyptian JointStock Company established according to Law No. 8 for 1997. The Company wasregistered on January 14, 1999 at the Commercial Register. On September 19, 2006, the extraordinary general assembly agreed to amendarticle (2) of the company's articles of incorporation in additional thetrademark of "Pachin" to become El Abour for Paints and Chemical IndustriesCompany "Pachin" The objective of the company is to manufacture various kinds of paints,varnishes, printing inks, animal extract products and related products, andmanufacturing of refill packaging of company products. Pachin for Inks is an Egyptian joint stock company established according to lawno. 8 for 1997, the Company was registered on April 27, 2005 at the CommercialRegister. The objective of the company is to manufacture and pack printing inks, relatedproducts, other chemical product, and manufacturing of special packages ofcompany products. 2. Basis for Preparation of Financial Statements The consolidated financial statements have been prepared in accordance withEgyptian Accounting Standards and applicable laws and regulations. The EgyptianAccounting Standards require referral to International Financial ReportingStandards "IFRS", when no Egyptian Accounting Standard or legal requirementexists to address certain types of transactions and their treatment. Theprincipal accounting policies adopted in the preparation of the financialstatements are set out below. A. Basis For Consolidation The consolidated financial statements include the subsidiary companies under thecontrol of the parent company (Paints And Chemical Industries Company S.A.E.(PACHIN), the subsidiaries representing in El-Obour for Paints and ChemicalIndustries Company where the parent company's share is 99.95%, and Pachin forInks where the parent company's shareis 99.96%. The consolidated financial statements were prepared on the following basis: • Eliminating all inter-company transactions and balances are eliminated • The unrealized profits that resulted from the inter-company transactions are eliminated. • The cost method is used to account for ownership in subsidiaries. • The consolidated income statement include the results of operation for all subsidiary companies starting from the date of ownership, the minority interest are eliminated. B. Fixed Assets Fixed assets are recorded at historical cost and are depreciated over theirestimated useful lives using the straight line method and according to theuseful lives presented in the following table. Type of Asset Depreciation rate---------------- --------------------Buildings 2 - 5 %Machinery and equipments 4.9 - 7.5 %Vehicles 10 - 20 %Tools 7.5 %Furniture 10 % C. Project under construction Project under construction are carried at cost, less any recognized impairmentloss. Costs include all costs associated with acquiring the asset and bringingit to be ready for use condition. Depreciation for these assets, follow the samebasis of similar fixed assets, commences when the assets become ready for theirintended use. The amounts paid as advances for purchasing fixed assets are recorded asconstruction in progress. Upon receiving the fixed assets and bringing them toready for use - condition, they are reclassified to fixed assets and depreciatedon the same basis as the similar fixed assets . D. Impairment of assets Property, plant and equipment and other non current assets are reviewed forimpairment losses whenever events or changes in circumstances indicate that thecarrying amount may not be recoverable. An impairment loss is recognized for theamount by which the carrying amount of the asset exceeds its recoverable amount,(the higher of an asset's net selling price and recoverable amount). For thepurposes of assessing impairment, assets are grouped at the lowest level, atwhich there are separate identifiable cash flows. E. Long-Term Investment Long-term investments are stated at cost, investments are reduced according tothe temporary reduction in its value. F. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is calculated as follows: • Raw materials, packaging, spare parts and fuel Cost is calculated using the moving average method. • Work in progress The cost include direct and indirect manufacturing costs of partially completedstages • Goods available for sale Goods available for sale are stated at cost. • Consignment goods Consignment goods are stated at cost. • Finished goods Finished goods are stated at manufacturing cost. G. Accounts Receivables Accounts receivables are carried at nominal value as reduced by appropriateallowances for estimated irrecoverable amounts. Provision for trade receivablesis formed when there is evidence that the Company will not be able to recoverthe amounts due according to the original terms of receivables. The provisionrepresents the difference between the carrying amounts due and the recoverableamounts, which is represented in the expected cash flows. H. Short Term Investments Short term investments, which represent the treasury bills are, stated at theirface value less any returns that are not accrued at the balance sheet date. Theissuance premium of governmental bonds will be amortized within 3 years and willbe adjusted with the revenue. I. Cash and Cash Equivalents Cash and cash equivalents are stated in the balance sheet at nominal value. J. Provisions Provisions are recognized when the Company has a present obligation as a resultof past events and that it is probable that an outflow of resources will berequired to settle the obligations with the possibility of providing a reliableestimate for the obligation amount. Provisions are reviewed at the consolidated balance sheet date and amended torepresent the best estimate where the effect of the time value of money ismaterial. The amount of a provision shall be present value of expendituresexpected to be required to settle the obligations. K. Accounts Payables Accounts payables are stated at the nominal value. L. Foreign Currencies Translations Financial Statements are presented in Egyptian pounds .Transactions incurrencies other than the Egyptian Pound, is recorded at the rates of exchangeprevailing on the dates of transactions. At the financial statement preparationdate, monetary assets and liabilities that are denominated in foreign currenciesare retranslated at the rates prevailing on the balance sheet date. Gains andlosses arising on exchange are included in the income statement for the period. M. Revenue Recognition Revenue is recognized on an accrual basis upon delivery of goods to customersand issuance of the sales invoice. Interest income is accrued on an accrual basis, by reference to the principaloutstanding and the effective interest rate applicable. N. Borrowing Cost Borrowing cost is recorded in the income statement in the period it occurred. O. Cash Flow Statement The cash flow statement is prepared using the indirect method. For the purposeof preparing the cash flows statement cash and cash equivalents are comprised ofcash on hand and at banks, less banks overdraft. P. Taxation Corporate tax is calculated based on the taxable profit, which may differ fromthe profit as per income statement. The company's tax is calculated based on the prevailing tax laws and regulationsin Egypt, a provision is formed for tax liabilities after performing sufficientstudies and in light of the tax assessments. The release of the new Egyptian Tax Law on June 2005 and its executiveregulations on December 2005 resulted in the recognition of deferred tax assetsand liabilities according to the International Financial Reporting Standard(IFRS), No (12), which represents the tax impacts of the temporary differencesbetween the assets and liabilities tax basis set by the new tax law, and theirreported amounts per the accounting principles used in the preparation of thefinancial statements. Accordingly, the income statement for the reporting period is to be charged bythe tax burden represented by the current tax (calculated on taxable profitbased on local tax laws, regulations, instructions and tax rates ruling at thedate of the financial statements) as well as the deferred tax. Generally, the recognized deferred tax liabilities on taxable temporarydifferences are reported as long-term liabilities, whereas deferred tax assetsreported as long-term assets shall not be recognized for deductible temporarydifferences except to the extent that it is probable that taxable profits willbe available against which deductible temporary differences can be utilized orthere is convincing evidence that sufficient taxable profit will be available inthe future. Q. Financial Instruments Financial Assets The principal financial assets represent cash on hand and at banks, accounts andnotes receivable, due from affiliates and certain other debit balances. Accounts and notes receivable are stated at their book value as reduced byappropriate allowance for estimated irrecoverable amounts. Financial Liabilities The principle financial liabilities represent banks overdraft, accounts andnotes payable, due to affiliates and certain other credit balances. Accounts payable are stated at their nominal value. 3. Sales Analysis 4. Fixed Assets, Net Fixed assets as at September 30, 2006 are comprised of the following; Consolidated Pachin Company 5. Projects under Construction 6. Investment in Subsidiary Companies These companies are not listed in the stock market. 7. Other Long-Term Investments 8. Inventories, Net The above mentioned figures net of provisions (refer to note 15). 9. Accounts Receivables 10. Notes Receivables Notes receivables as of September 30, 2006 amounted to EGP 36 946 258. Net of aprovision amounted to EGP 18.4 million. Its maturity date is due after one year. 11. Due from Subsidiary Pachin for Inks The Company was incorporated according to the decree of the Investment Authoritydated April, 27 2005. The balance of this account amounted to EGP 126 976 whichrepresents the amounts paid by the holding Company on behalf of the mentionedcompany. 12. Other Debit Balances Other debit balances as of September 30, 2006 are comprised of thefollowing: * Includes the investment income from El-Obour for Paints and ChemicalIndustries Company amounting to EGP 65 764 500 ** This balance Contains: • An amount of EGP 12.447 million, which represents the amount paid to the Tax Authority for the years 1993 to 1997 according for the decision of Internal Committee and the Appeal Committee. This amount will be settled against the provision available for this objective upon receiving the court decision (Refer to note No 28). • An amount of EGP 12.411 million paid on account for the tax due for the years 1998 to 2001. 13. Short-Term Investments Consolidated Pachin --------------- --- --------------- Sep-2006 Jun-2006 Sep-2006 Jun-2006 ---------- ---------- --- ---------- ---------- EGP EGP EGP EGPTreasury Bill 517 689 86 73 497 804 066 926 28 27 661 452Investment Certificates 188 837 188 837 188 837 188 837Governmental bonds(Dollars) -- 5 175 000 -- 5 175 000 --------- -------- --------- --------- 354 878 86 78 861 641 903 114 29 33 025 289 ========= ======== ========= ========= 14. Cash and Cash Equivalents Consolidated Pachin --------------- --- --------------- Sep-2006 Jun-2006 Sep-2006 Jun-2006 ---------- ---------- --- ---------- ---------- EGP EGP EGP EGPCash on hand 814 407 3 58 072 651 626 50 000Bank current account 660 187 10 3 975 878 607 398 6 1 216 698Bank time deposit 129 270 78 51 134 254 790 625 34 20 454 566Checks undercollections* 493 511 6 5 571 472 6 161 871 3 155 857 --------- -------- --------- --------- 096 377 98 60 739 676 919 812 47 24 877 121 ========= ======== ========= ========= * Represents outstanding checks with due dates before 30/9/2006 were collectedafter this date. 15. Provisions Balance as of Provision Provision Balance as of --------------- ----------- ----------- --------------- 1 July 2006 Established Used 30-Sep-06 ------------- ------------- ------ ----------- EGP EGP EGP EGPA- Provisions-Current Liabilities-----------------------------------Provision for taxdisputes 25 649 283 -- -- 25 649 283Provision for claims 7 003 321 -- -- 7 003 321Other provisions 582 705 -- -- 582 705 ---------- --------- -------- ----------Total provisions(Current liabilities) 33 235 309 -- -- 33 235 309B- Provisions-Current Assets------------------------------Accounts receivableprovision 5 906 395 -- -- 5 906 395Notes receivableprovision 18 438 000 -- -- 18 438 000Raw material provision 540 532 -- -- 540 532Finished goodsprovision 1 598 649 -- -- 1 598 649 ---------- --------- -------- ----------Slow moving andobsolete spare 481 533 -- -- 481 533parts provision ---------- --------- -------- ----------Total provisions(Current Assets) 60 200 418 -- -- 60 200 418 ========== ========= ======== ========== 16. Bank Overdraft Represents credit facilities that the company has obtained from various banks asof September, 30 2006 amounting to EGP 28.361 million and it is secured by timedeposit. 17. Accounts and Notes Payables Accounts and notes payables as of September 30, 2006 are comprised of: 18. Due to Subsidiary El-Obour for Paints and Chemicals Industries Company The balance of this account amounted to EGP 1 467 011 resulting from theordinary operations between the two companies. 19. Other Credit Balances Consolidated Pachin ---------------- --- ---------------- Sep-2006 Jun-2006 Sep-2006 Jun-2006 ---------- ---------- --- ---------- ---------- EGP EGP EGP EGPAdvance receipts fromcustomers 7 400 864 8 836 781 3 481 007 2 655 185Accrued expenses 4 256 925 7 333 419 3 546 302 6 561 395Sales tax 3 426 389 6 071 902 508 541 1 868 202Deposit withheld 2 468 897 2 281 797 812 039 743 158Employees share inprofit 6 704 036 37 370 6 704 036 37 370Other employeesbenefits 4 082 371 4 082 371 4 082 371 4 082 371Fixed assets creditors 1 444 343 376 122 124 081 108 841Tax withheld 516 230 480 670 330 551 320 044Current portion of long 259 038 428 658 -- --term liabilities *Other creditors 5 451 601 4 109 724 1 698 675 3 792 614 --------- -------- --------- ---------- 36 010 694 34 038 814 21 287 603 20 169 180 ========= ======== ========= =========== * Refer to Note No. "22-A" 20. Share Capital The company's authorized capital amounted to EGP 200 000 000, and the issued andpaid-up capital amounted to EGP 200 000 000, distributed among 20 million shareswith par value ofEGP 10 each. 21. Reserves 22. Long Term liabilities - The long term liabilities are represented as follows : A. The sales tax installment on the imported assets whichamounted to EGP 961 872 (after deducting the current portion which included inother credit balances). B. The deferred revenue related to the company's donated assetswhich will be recorded revenue over the estimated useful lives of those assetswith an amount of EGP 486 010. C. Deferred tax liability amounted to EGP 1 547 139 resultedfrom the difference between the books depreciations rates and the tax lawdepreciations rates (Refer to Note No. "2N" ) 23. Contingent Liability - The uncovered portion of the Letter of Credit amounting to EGP 10.057 millionas of 30 June 2006. 24. Cash and Cash Equivalent (Cash Flow) 25. Capital Commitments - Represents the unpaid portion of the company's share in Pachin for Inks sharecapital with an amount of EGP 37 485 000. - The capital commitment as of June, 30 2006 represent the unexecuted portion ofthe construction contract for the management building for El-Obour Paints andChemicals Industries with an amount of EGP .5 million. - The capital commitment as of June, 30 2006 represent the unexecuted portion ofthe construction contract for the factory building for Pachin for Inks with anamount of EGP 29 million. 26. Managing the Risks Related to Financial Instruments (i) Foreign Exchange Risk Foreign Currency risk represents the change in currency rates which affects thereceipts, disbursements and the translation of assets and liabilities in foreigncurrencies. The company exerts all efforts to avoid having a net foreigncurrency open position. (ii) Credit risk The group's credit risk is primarily attributable to its trade and notesreceivables. This risk represents some customers' failure to pay their debts intime. The company forms a provision for doubtful debts to meet this risk. (iii) Interest risk This risk represents the changing rates of interest which affect the operationsresults. The company's management exerts all efforts to obtain the bestconditions in the market for banking facilities and performs periodic review onthe interest rates. (iv) Fair value The fair values of financial instrument dose not differ from the book value asof the balance sheet date. 27. Tax Position Corporate Income Tax (Paints and Chemicals Industries Company) The company is subject to corporate tax according to law No. 11 for 2005 issuedin June 2005. The company submits its tax returns in due time and pays the taxesdue. The Tax Authority inspected the company's books and the taxes were settled andpaid for the years till June 30, 1993. The Tax Authority inspected and assessed the company's book for years 1993/1994till 1996/1997 and the disputed matters are currently in the court. The Tax Authority inspected the company's books for year 1997/1998 till 2000/2001. The company objected the claim resulting from the inspection and thedisputed points were transferred to the Internal Committee. The tax claimsamounted to EGP 26.5 million. The disputed points were transferred to the AppealCommittee and the final resolution has not been determined yet. The Tax Authority inspected and assessed the company's books for sales tax till31/3/2005. The Tax Authority inspected and assessed the company's books for salary tax from1999 till 2002. Corporate Income Tax (El-Obour for Paints and Chemicals Industries Company) The company is enjoying tax exemption starting from the first year of operationaccording to law No 8 for year 1997. This exemption will be till June, 30 2011. Corporate Income Tax (Pachin for Inks) The company is subject to the provisions of Law No. 8 for 1997 and its executiveregulations. The company did not start its operation yet. Financial Controller The Managing Chairman of the Director Board PAINTS AND CHEMICAL INDUSTRIES COMPANY S.A.E. Cosolidated Changes in Shareholders' Equity Statement For the year Ended September 30,2006 Share Legal Retained Profit Total Capital Reserve Earnings For the year EGP EGP EGP EGP EGP Balance as ofJune 30,2005 200 000 000 167 657 277 1 781 129 73 702 171 443 140 577Transfer toreserves -- 6 850 725 -- (6 850 725) --Transfer toRetainedEarnings -- -- 1 282 476 (1 282 476) --Dividends -- -- -- (65 568 970) (65 568 970)Net profit asof June30,2006 -- -- -- 81 328 926 81 328 926 ----------- ----------- --------- ----------- -----------Balance as ofJune 30,2006 200 000 000 174 508 002 1 781 129 81 328 926 458 900 533Transfer toreserves -- 7 803 138 -- (7 803 138) --Transfer toRetainedEarnings -- -- 3 760 423 (3 760 423) --Dividends -- -- -- (69 765 365) (69 765 365)Net profit asof September30,2006 -- -- -- 46 767 713 46 767 713 ----------- ----------- --------- ----------- -----------Balance as ofSeptember30,2006 200 000 000 182 311 140 6 824 028 46 767 713 435 902 881 =========== =========== ========= =========== =========== Financial Controller The Managing Director Chairman of the Board PAINTS AND CHEMICAL INDUSTRIES COMPANY S.A.E. Consolidated Balance Sheet Consolidated Pachin Notes 30/9/2006 30/6/2006 30/9/2006 30/6/2006 EGP EGP EGP EGP Long-term assetsFixed Assets(Net) (2b, 4) 179 183 007 181 488 215 18 297 005 18 800 526Projects underconstructions (2c, 5) 24 556 514 19 126 833 1 118 914 806 754Other long-term assetsInvestment insubsidiarycompanies (2e, 6) -- -- 212 395 000 212 395 000Otherlong-terminvestments (7) 774 906 774 906 774 906 774 906 -------- -------- -------- --------Totallong-termassets 204 514 427 201 389 954 232 585 825 232 777 186 -------- -------- -------- -------- Current assetsInventories(Net) (2f, 8) 126 111 846 112 453 338 63 657 964 58 676 842Letters ofcredit 5 074 268 2 398 273 2 310 658 1 766 906Accountsreceivables(Net) (2g, 9) 37 152 691 33 086 939 27 584 059 26 056 374Notesreceivable(Net) (10) 36 946 258 33 357 692 6 717 641 5 693 332Due fromsubsidiariescompanies (11) -- -- 126 976 6 284 784Other debitbalances (12) 48 142 026 45 147 260 106 983 005 109 958 191Short-terminvestments (2h, 13) 86 878 354 78 861 641 29 114 903 33 025 289Cash and cashequivalents (2i, 14) 98 377 096 60 739 676 47 812 919 24 877 121 -------- -------- -------- --------Total currentassets 438 682 539 366 044 819 284 308 125 266 338 839 -------- -------- -------- ------- Current LiabilitiesProvisions (15 A) 33 235 309 33 235 309 30 854 702 30 854 702Banks -overdraft (16) 28 361 325 6 122 191 18 903 444 1 451 380Accounts andnotes payable (17) 45 520 497 31 732 920 9 079 876 10 124 190Dividendspayable 60 000 000 257 986 60 000 000 257 986Due tosubsidiariescompanies (18) -- -- 1 467 011 --Due to Boardof Directors 1 000 000 -- 500 000 --Other creditbalances (19) 36 010 694 34 038 814 21 287 603 20 169 180 -------- -------- -------- --------Total CurrentLiabilities 204 127 825 105 387 220 142 092 636 62 857 438 -------- -------- -------- --------Working Capital 234 554 714 260 657 599 142 215 489 203 481 401 -------- -------- -------- --------TotalInvestments 439 069 141 462 047 553 374 801 314 436 258 587 ======== ======== ======== ========Share Capital and ReservesShare capital (20) 200 000 000 200 000 000 200 000 000 200 000 000Reserves (21) 182 311 140 174 508 002 166 415 698 162 610 049Retainedearnings 6 824 028 3 063 605 2 308 840 1 043 740Profit for theperiod/year 46 767 713 81 328 926 5 709 391 72 237 413 -------- -------- -------- --------Total ShareCapital andReserves 435 902 881 458 900 533 374 433 929 435 891 202 -------- -------- -------- --------Minorityinterest 171 239 151 999 -- --Long-termliabilities (22) 2 995 021 2 995 021 367 385 367 385 -------- -------- -------- --------TotalFinancing ofWorking Caitaland Long-termAssets 439 069 141 462 047 553 374 801 314 436 258 587 ======== ======== ======== ======== - The accompanying notes from (1) to (27) form an integral part of the financial statements. Financial Controller The Managing Director Chairman of the Board - Auditors' Report attached. PAINTS AND CHEMICAL INDUSTRIES COMPANY S.A.E. Consolidated Income Statement For the year Ended September 30,2006 Consolidated Pachin Notes 30/9/2006 30/9/2005 30/9/2006 30/9/2005 ----------- --- ----------- --- ----------- --- ----------- EGP EGP EGP EGP ----- ----- ----- -----Net sales (3) 153 537 450 138 837 271 41 766 933 36 858 997Cost of Sales (106 688 458) (97 874 390) (35 088 380) (33 757 270) ---------- ---------- ---------- ----------Gross profit 46 848 992 40 962 881 6 678 553 3 101 727 ---------- ---------- ---------- ---------- General andadministrativeexpenses (2 450 750) (2 570 337) (1 693 228) (2 115 648)Allowance forattendingBoard ofDirector ( 72 500) ( 48 500) ( 25 500) ( 18 000) ---------- ---------- ---------- ----------Profit (loss)fromoperations 44 325 742 38 344 044 4 959 825 968 079Interestexpenses ( 413 669) (1 076 741) ( 155 674) ( 515 065)Profit on saleof investment 593 039 1 355 323 181 685 1 355 323Investmentincome 425 700 -- 425 700 --Interest income 1 772 712 411 686 215 126 281 214Other income 112 467 12 691 110 468 10 523Profits/Lossesfrom foreigncurrencytranslation ( 27 739) ( 62 837) ( 27 739) ( 62 896) ---------- ---------- ---------- ----------ProfitbeforeTaxes 46 788 252 38 984 166 5 709 391 2 037 178Income taxes -- -- -- --Deferred taxes -- -- -- -- ---------- --- ---------- --- ---------- --- ----------Profit aftertax 46 788 252 38 984 166 5 709 391 2 037 178Minorityinterest ( 20 539) ( 18 477) -- -- ---------- ---------- ---------- ----------Profit aftertax andminorityinterest 46 767 713 38 965 689 5 709 391 2 037 178Employees' andDirectors'bonus (2 386 111) (2 133 333) (1 736 111) (1 683 333) ---------- ---------- ---------- ----------Profitattributabletoshareholders 44,381,602 36 832 356 3 973 280 353 845 ========== ========== ========== ==========Earnings pershare 2.22 1.84 0.20 0.02 Financial Controller The Managing Director Chairman of the Board For the year Ended September 30,2006 Consolidated Pachin 30/9/2006 30/9/2005 30/9/2006 30/9/2005 ----------- --- ----------- --- ----------- --- ----------- EGP EGP EGP EGP ----- ----- ----- -----Cash flows from operating activities Net profitbefore tax 46 788 252 38 984 166 5 709 391 2 037 178 Adjustments to reconcile net profit to net---------------------------------------------cash provided from operating activities-----------------------------------------Depreciation 2 329 036 2 282 358 503 816 564 660Net provisionsformed and(utilized) -- ( 217 639) -- --Profit on saleof investments ( 593 039) (1 355 323) ( 181 685) (1 355 323) ---------- ---------- ---------- ----------Operatingprofit beforeworkingcapitalchanges 48 524 249 39 693 562 6 031 522 1 246 515 (Increase )decrease inreceivables (10 649 084) (10 240 403) 6 581 000 (3 498 131)Decrease(Increase ) ininventories (16 334 503) 11 007 918 (5 524 874) 2 236 976(Decrease)Increase increditors 10 091 492 (9 041 162) (5 125 546) (1 529 634) ---------- ---------- ---------- ----------Net cashprovided fromoperatingactivities 31 632 154 31 419 915 1 962 102 (1 544 274) ---------- ---------- ---------- ---------- Cash flows from investing activitiesPurchase ofinvestments (45 266 268) (43 006 036) (5 782 930) (27 095 301)Proceeds fromsale ofinvestments 37 842 594 23 196 258 9 875 001 23 196 258Purchase ofinvestments insubsidiary(Pachin forInks) -- -- -- (7 497 000)Purchase offixed assetsand otherlong-termassets (5 453 509) (2 187 263) ( 312 455) ( 119 269) ---------- ---------- ---------- ----------Net cash usedin investingactivities (12 877 183) (21 997 041) 3 779 616 (11 515 312) ---------- ---------- ---------- ---------- Cash flows from financing activitiesDividends paid (3 356 685) -- ( 257 984) -- ---------- ---------- ---------- -----------Net cash (usedin) financingactivities (3 356 685) -- ( 257 984) -- ---------- ---------- ---------- ---------- Net increaseor (decrease)in cash andcashequivalents 15 398 286 9 422 874 5 483 734 (13 059 586)Net cash andcashequivalents atbeginning ofthe period 54 617 485 25 979 525 23 425 741 23 560 966 ---------- ---------- ---------- ----------Net cash andcashequivalents atend of theperiod 70 015 771 35 402 399 28 909 475 10 501 380 ========== ========== ========== ========== Financial Controller The Managing Director Chairman of the Board This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Paints&ch.gdr