Naeem Maqsood, Aca

SOMA HOLDING LLC CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2019 December 31, 2019 USD ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Unbilled revenue Income taxes recoverable Prepaid expenses Other financial assets Other assets NON CURRENT ASSETS Property and equipment Investment properties Goodwill Intangible assets Investments in joint ventures and associates Other financial assets Other assets LIABILITIES AND EQUITY CURRENT LIABILITIES Trade and other payables Billings in excess of costs Income taxes payable Current portion of long-term debt Provisions Other financial liabilities Other liabilities NON CURRENT LIABILITIES Long-term debt Deferred tax liabilities Other financial liabilities Other liabilities Total Liabilities EQUITY AND RESERVES Share capital Contributed surplus Retained earnings December 31, December 31,- USD USD 715,150 384,907 143,894 87,920 18,959 214,180 52,310 1,617,320 703,540 353,451 148,908 38,400 14,283 176,700 41,060 1,476,342 674,490 208,518 133,434 68,250 13,882 138,330 31,720 1,268,624 319,332 4,957,298 409,028 78,857 499,600 83,163 11,880 6,359,158 272,750 4,123,472 409,028 85,748 528,600 63,691 37,910 5,521,199 112,240 3,665,390 409,028 72,047 398,000 61,606 16,570 4,734,881 7,976,478 6,997,541 6,003,505 259,113 77,803 91,270 111,390 12,047 31,927 9,837 593,387 211,726 60,822 63,600 128,664 14,863 31,672 8,650 519,997 188,929 49,441 45,600 178,779 16,373 35,042 5,208 519,372 1,004,715 37,547 2,041 57,955 1,102,258 1,695,645 1,282,040 52,407 2,342 42,778 1,379,567 1,899,564 1,303,005 54,561 2,257 37,191 1,397,014 1,916,386 3,411,958 14,906 2,853,969 6,280,833 7,976,478 3,411,958 14,906 1,671,113 5,097,977 6,997,541 3,411,958 14,906 660,255 4,087,119 6,003,505 SOMA HOLDING LLC CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED DECEMBER 31, 2019 December 31, 2019 USD Gross revenue Less: subconsultant and other direct expenses December 31, 2018 USD Rental income 3,044,472 404,031 2,640,441 67,376 2,503,149 316,445 2,186,704 60,522 Net revenue 2,707,817 2,247,226 Less: Direct payroll costs Gross margin 829,926 1,877,891 699,657 1,547,569 346,138 296,840 32,389 21,235 62,511 (13,460) (34,140) (18,400) 1,184,778 232,086 87,984 27,849 20,008 79,496 (30,390) 18,100 1,112,436 Less/(Add): Administrative and marketing expenses Fair value adjustment Depreciation of property and equipment Amortization of intangible assets Net interest expense Other net finance (income)/expense Share of income from joint ventures and associates Foreign exchange (gain)/loss Other (income)/expenses Income before taxation Less: Taxation Current Deferred Net income for the year (103,500) 1,288,278 120,282 (14,860) 105,422 1,182,856 14,700 1,097,736 89,032 (2,154) 86,878 1,010,858 SOMA HOLDING LLC CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2019 Note December 31, 2019 December 31, 2018 USD USD CASH FLOW FROM OPERATING ACTIVITIES Income before taxation 1,288,278 1,097,736 32,389 21,235 296,840 62,511 27,849 20,008 87,984 79,496 412,975 215,337 1,701,253 1,313,073 Add/(less) adjustment for non cash changes and other items: Depreciation of property and equipment Amortization of intangible assets Fair value adjustments Net interest expense Operating Cash Flow Before Working Capital Changes Changes in working capital (Increase)/decrease in current assets Trade and other receivables Unbilled revenue Prepaid expenses Other financial assets Other assets Increase/(decrease) in current liabilities Trade and other payables Billings in excess of costs Provisions Other financial liabilities Other liabilities (31,456) 5,014 (4,676) (37,480) (11,250) (144,933) (15,474) (401) (38,370) (9,340) 47,387 16,981 (2,-,187 22,797 11,381 (1,510) (3,370) 3,442 (16,854) (175,778) Cash Generated From Operations 1,684,399 1,137,295 Income taxes paid Interest expense paid (142,132) (62,511) (204,643) 1,479,756 (41,182) (79,496) (120,678) 1,016,617 Property and equipment sold/ (purchased) Intangible asset purchased sold/ (purchased) Investment properties Investments in joint ventures and associates Other financial asset (78,971) (14,344) (1,130,666) 29,000 6,558 (188,359) (33,709) (546,066) (130,600) (23,425) Net Cash Used In Investing Activities (1,188,423) (922,159) Long-term debt Other financial liabilities (294,599) 14,876 (71,080) 5,672 Net cash used in financing Activities (279,723) (65,408) 11,610 29,050 703,540 674,490 715,150 703,540 715,150 703,540 Net Cash Flow/ (Used In) Operating Activities CASH FLOW FROM INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR A - CASH AND CASH EQUIVALENTS COMPRISED OF: Cash and bank balances A SOMA HOLDING LLC NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 1 Corporate Information The Group designs, owns, enhances and operates commercial real estate assets across Middle East, Europe and USA including office buildings, residential buildings and others, which are leased to numerous commercial and private tenants. The Group invests primarily in such properties that provide substantial income flows and potential for value increase through asset management. The Group does not acquire properties for speculative purposes. 2 Basis of Preparation These consolidated financial statements of the Company were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The accounting policies adopted in these consolidated financial statements are based on IFRS effective as at December 31, 2019. 3 Basis of Consolidation The consolidated financial statements include the accounts of LLC, its subsidiaries, and its structured entities as at December 31, 2019. 4 Summary of Significant Accounting Policies a) Cash and cash equivalents Cash and cash equivalents include cash, cash in escrow, and unrestricted investments. Such investments are carried at fair value. b) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of an intangible asset acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any impairment losses. The Company’s intangible assets have finite lives that are amortized over their useful economic lives on a straight- line basis. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year-end. c) Investments in joint arrangements and associates The Company has joint arrangements, which are classified as either a joint venture or joint operation based on the rights and obligations arising from the contractual obligations between the parties to the arrangement. Joint arrangements that provide the Company with rights to the net assets of the arrangement are classified as joint ventures, and joint arrangements that provide the Company with rights to the individual assets and obligations arising from the arrangement are classified as joint operations. Investments in associated companies, over which the Company is able to exercise significant influence, but not control, are accounted for using the equity method, which reflects the Company’s investment at original cost plus post acquisition changes in the Company’s share of the net assets of the associate. The share of the profit of associates is recorded in the consolidated statements of income. Since this is profit attributable to the equity holders of the associate, it is profit after tax. Adjustments are made in the Company’s consolidated financial statements to eliminate its share of unrealized gains and losses resulting from transactions with its associates. If the financial statements of the associates or joint arrangements are prepared for a different date from those of the Company, adjustments are made for the effects of significant transactions or events that occur between that date and the date of the Company’s financial statements. Where necessary, adjustments are made to bring the accounting policies in line with the Company’s. d) Provisions General Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed—for example, under an insurance contract—and when the reimbursement is virtually certain, the reimbursement is recognized as a separate asset. The expense relating to any provision is presented in the consolidated statements of income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. Contingent liabilities recognized in a business combination A contingent liability recognized in a business combination is initially measured at its fair value. Subsequently, it is measured in accordance with the above general description of provisions. e) Foreign currency translation The Company’s consolidated financial statements are presented in US dollars, which is also the parent Company’s functional currency. Each entity in the Company determines its own functional currency, and items included in the financial statements of each entity are measured using that functional currency. f) Impairment The carrying amounts of the Company’s assets or group of assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is an indication of impairment. An asset may be impaired if there is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset (i.e., an incurred "loss event") and if that loss event has an impact on the estimated future cash flows of the financial asset. If an indication of impairment exists or when annual impairment testing for an asset is required, the asset’s recoverable amount is estimated. Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received, excluding discounts, duty, and taxes collected from clients that are reimbursable to government authorities. The Company assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Company has concluded that it is acting as a principal in all of its revenue arrangements. g) Taxation Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Company operates and generates taxable income. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. 5 Significant Accounting Judgments, Estimates, and Assumptions The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities, as well as the disclosure of contingent liabilities at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.