Saudi Hollandi Capital Company Al Yusr Saudi Riyal Morabaha Fund UNAUDITED INTERIM FINANCIAL STATEMENTS 30 JUNE 2015
Saudi Hollandi Capital Company – Al Yusr Saudi Riyal Morabaha Fund BALANCE SHEET As at 30 June 2015
Note ASSETS Bank balance Morabaha placements Held to maturity investments Accrued income Other receivables
30 June 2015 (Unaudited) SR
31 December 2014 (Audited) SR
30 June 2014 (Unaudited) SR
48,137,170 582,000,000 131,342,150 2,145,495 1,825,410 ───────── 765,450,225 ─────────
20,254,635 374,000,000 140,012,400 1,566,279 490,628 ───────── 536,323,942 ─────────
19,034,401 434,200,000 97,500,000 2,586,223 ───────── 553,320,624 ─────────
29,791 ───────── 29,791 ───────── 765,420,434 ═════════
7,347 ───────── 7,347 ───────── 536,316,595 ═════════
24,973 ───────── 24,973 ───────── 553,295,651 ═════════
Units in issue
58,874,904 ═════════
41,410,621 ═════════
42,905,808 ═════════
Per unit value
13.0008 ═════════
12.9512 ═════════
12.8956 ════════
LIABILITY Accrued expenses
NET ASSETS
4 5
The accompanying notes 1 to 8 form part of these interim financial statements. 2
Saudi Hollandi Capital Company – Al Yusr Saudi Riyal Morabaha Fund STATEMENT OF OPERATIONS For the six month period ended 30 June 2015
Note INVESTMENT INCOME Special commission income Trading income, net
EXPENSES Management fees Other expenses
2015 (Unaudited) SR 4,344,684 55,735 ───────── 4,400,419 ─────────
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NET INCOME FROM OPERATIONS
The accompanying notes 1 to 8 form part of these interim financial statements. 3
(1,686,660) (130,556) ───────── (1,817,216) ───────── 2,583,203 ═════════
2014 (Unaudited) SR 3,759,592 ───────── 3,759,592 ───────── (1,196,768) (20,427) ───────── (1,217,195) ───────── 2,542,397 ═════════
Saudi Hollandi Capital Company – Al Yusr Saudi Riyal Morabaha Fund STATEMENT OF CASH FLOWS For the six month period ended 30 June 2015
OPERATING ACTIVITIES Net income from operations Changes in operating assets and liability: Morabaha placements Held to maturity investments Accrued income Accrued expenses Other receivables Net cash used in operating activities
FINANCING ACTIVITIES Bank overdraft Proceed from sale of units Value of units redeemed Net cash from financing activities INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the period CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
2015 (Unaudited) SR
2014 (Unaudited) SR
2,583,203
2,542,397
(164,900,000) (208,000,000) 55,000,000 8,670,250 (1,192,958) (579,216) 19,234 22,444 (1,334,782) ───────── ───────── (108,531,327) (198,638,101) ───────── ─────────
(17,017,067) 300,691,183 352,881,902 (156,108,388) (126,361,266) ───────── ───────── 127,565,728 226,520,636 ───────── ───────── 19,034,401 27,882,535 20,254,635 ───────── 48,137,170 ═════════
───────── 19,034,401 ═════════
3,765,468 ═════════
2,566,634 ═════════
Operational cash flows from special commission income Special commission income received
The accompanying notes 1 to 8 form part of these interim financial statements. 4
Saudi Hollandi Capital Company – Al Yusr Saudi Riyal Morabaha Fund STATEMENT OF CHANGES IN NET ASSETS For the six month period ended 30 June 2015
NET ASSETS AT THE BEGINNING OF THE PERIOD CHANGES FROM OPERATIONS Net income for m operations
CHANGES FROM UNIT TRANSACTIONS Proceeds from sale of units Value of units redeemed Net change from unit transactions NET ASSETS AT THE END OF THE PERIOD
2015 (Unaudited) SR
2014 (Unaudited) SR
536,316,595 ─────────
406,170,459 ─────────
2,583,203 ─────────
2,542,397 ─────────
352,881,902 (126,361,266) ───────── 226,520,636 ───────── 765,420,434 ═════════
300,691,183 (156,108,388) ───────── 144,582,795 ───────── 553,295,651 ═════════
UNIT TRANSACTIONS Transactions in units for the period ended 30 June are summarised as follows: 2015 (Unaudited) Units
2014 (Unaudited) Units
UNITS AT THE BEGINNING OF THE PERIOD
41,410,621 ─────────
31,664,431 ─────────
Units sold Units redeemed
27,198,160 (9,733,877) ───────── 17,464,283 ───────── 58,874,904 ═════════
23,375,108 (12,133,731) ───────── 11,241,377 ───────── 42,905,808 ═════════
Net increase in units UNITS AT THE END OF THE PERIOD
The accompanying notes 1 to 8 form part of these interim financial statements. 5
Saudi Hollandi Capital Company – Al Yusr Saudi Riyal Morabaha Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS 30 June 2015 1
GENERAL
Al Yusr Saudi Riyal Morabaha Fund (the Fund) is an open-ended fund created by an agreement between Saudi Hollandi Capital Company (the Fund Manager or the Company), a subsidiary of Saudi Hollandi Bank (the Bank) and investors in the Fund (the Unitholders) and is designed for investors seeking steady capital growth with maximum preservation of capital and liquidity through investments in morabaha transactions, sukuks. Morabaha transactions comprise purchases of goods and commodities from approved suppliers against immediate payment and selling them to reputed organisations on deferred payment terms thereby generating a profit. The assets of the funds are invested in Saudi Riyal denominated morabaha transactions and sukuks. All income is reinvested in the Fund and is reflected in the unit price. The Fund commenced its operations on 26 December 2001. The books and records of the Fund are maintained in Saudi Riyals (SR). 2
REGULATING AUTHORITY
The Fund is governed by the Investment Fund Regulations (the Regulations) published by Capital Market Authority (CMA) on 22 Dhul Hijja 1427H (corresponding to 12 January 2007) detailing requirements for all funds within the Kingdom of Saudi Arabia. 3
SIGNIFICANT ACCOUNTING POLICIES
These interim financial statements have been prepared in accordance with the accounting standard on interim financial reporting issued by the Saudi Organization of Certified Public Accountants (SOCPA). The significant accounting policies used in the preparation of these interim financial statements are consistent with those used and disclosed in the annual financial statements for the year ended 31 December 2014 and are as follows: Accounting convention The interim financial statements are prepared under the historical cost convention. Cash and cash equivalents Cash and cash equivalents as referred to in the statement of cash flows comprise bank balance and money market placements with an original maturity of less than ninety days. Investment valuation Investments that are bought with the intention of being held to maturity are carried at cost (adjusted for any premium or discount on an effective yield basis), less permanent decline in value. Trading investments are valued at their market price as at the balance sheet date. Unrealised gains and losses on the revaluation of investments and realised gains and losses on the disposal of investments are recognised in the statement of operations. Morabaha placements are carried at cost less provision for any uncollectable amounts. Accrued special commission income as at the period end, is disclosed separately. Investment transactions Investment transactions are accounted for as of the trade date. Zakat/income tax Zakat/income tax is the obligation of the unit holders and is not provided for in the accompanying financial statements. Revenue recognition Special commission income is recognised on an effective yield basis. Realised gains and losses on investments sold are determined on a weighted average cost basis. Expenses Expenses are recognised based on the accrual method.
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Saudi Hollandi Capital Company – Al Yusr Saudi Riyal Morabaha Fund NOTES TO THE INTERIM FINANCIAL STATEMENTS (continued) 30 June 2015 4
MORABAHA PLACEMENTS 30 June 2015 (Unaudited) SR
Placements with other banks Placements with the Bank
5
391,000,000 191,000,000 ───────── 582,000,000 ═════════
30 June 2014 (Unaudited) SR
152,000,000 434,200,000 268,000,000 ───────── ───────── 420,000,000 434,200,000 ═════════ ═════════
HELD TO MATURITY INVESTMENTS 30 June 2015 (Unaudited) SR
Debt securities Almarai Sukuk IV Al Hilal Bank Sukuk Arabian Aramco Total Services Company Sukuk Saudi British Bank Sukuk – III SGB – Sukuk Saudi Electricity Company Sukuk – III Saudi Electricity Company Sukuk – II
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31 December 2014 (Audited) SR
49,000,000 35,625,000 21,960,400 15,000,000 9,756,750 ───────── 131,342,150 ═════════
31 December 2014 (Audited) SR
30 June 2014 (Unaudited) SR
55,000,000 49,000,000 22,500,000 23,000,000 22,512,400 14,500,000 5,000,000 ───────── ───────── 94,012,400 97,500,000 ═════════ ═════════
TRANSACTIONS WITH RELATED PARTIES
The Fund is managed and administered by the Fund Manager. For these services the Fund pays a management fee of 0.5% per annum calculated on its net assets under management at each valuation date. Other expenses paid by the Company on behalf of the Fund are charged to the Fund. In the normal course of business the Fund places morabaha investments, borrows, and purchases and sells securities from or to the Bank at prevailing market rates. The Bank acts as the Fund’s banker and the Company acts as the custodian to the Fund’s investment. During the period the Fund has placed special commission bearing Morabaha placements with the Bank. 7
LAST VALUATION DAY
The last valuation day of the period was 30 June 2015 (2014: 30 June 2014). 8
RESULTS OF OPERATIONS
The results for the interim period may not be indicative of the annual operating results.
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