|
Independent
auditors’ report to the Government of Dubai
We have
audited the accompanying consolidated balance sheet of Dnata
(“the company”) and its subsidiaries (“the
group”) as at 31 March 2002 and the related consolidated
statements of income and cash flows for the year then ended.
These financial statements are the responsibility of the company’s
management. 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 plan and perform the audit
to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our
opinion, the consolidated financial statements present fairly,
in all material respects, the financial position of the group
as at 31 March 2002 and the results of its operations and
its cash flows for the year then ended in accordance with
International Accounting Standards.
PRICEWATERHOUSECOOPERS
Chartered Accountants
Dubai
17 April 2002
Consolidated
income statement for the year ended 31 March 2002
|
Notes
|
2002
|
2001
|
|
|
|
AED’000
|
AED’000
|
|
|
|
|
|
|
Operating revenue |
|
|
702,234
|
|
|
|
|
|
|
Other operating income |
|
8,456
|
8,538
|
|
|
|
|
|
|
Operating costs |
|
|
(631,460)
|
|
|
|
|
|
|
Operating profit |
|
112,776
|
79,312
|
|
|
|
|
|
|
Interest income |
|
17,372
|
28,745
|
|
|
|
|
|
|
Associated companies - share of results |
|
4,619
|
1,471
|
|
|
|
|
|
|
Profit for the year |
|
134,767
|
109,528
|
Consolidated
balance sheet at 31 March 2002
|
|
Notes
|
2002
|
2001
|
|
|
|
AED’000
|
AED’000
|
|
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
|
167,751
|
|
Investments in associates |
|
|
10,059
|
|
Long term receivable |
|
|
70,471
|
|
Held-to-maturity investment |
|
-
|
73,460
|
|
|
|
251,096
|
321,741
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Inventories |
|
8,827
|
9,952
|
|
Trade and other receivables |
|
|
165,582
|
|
Held-to-maturity investment |
|
|
-
|
|
Cash and cash equivalents |
|
|
368,001
|
|
|
|
727,103
|
543,535
|
|
Total assets |
|
978,199
|
865,276
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
Capital and reserves |
|
|
|
|
Capital |
|
|
62,615
|
|
Reserves |
|
555,567
|
461,503
|
|
|
|
618,182
|
524,118
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
End of service benefit provision |
|
|
93,150
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
|
|
221,546
|
|
Bank overdrafts |
|
|
26,462
|
|
|
|
253,484
|
248,008
|
|
Total liabilities |
|
360,017
|
341,158
|
|
Total equity and liabilities |
|
978,199
|
865,276
|
The consolidated
financial statements were approved on the 17th day of April
2002 and signed by:
 |
 |
Sheikh
Ahmed bin Saeed Al-Maktoum
Chairman
|
Maurice
Flanagan
Group Managing Director
|
Consolidated
statement of changes in equity for the year ended 31 March
2002
|
|
Capital
|
Translation
reserve
|
Retained earnings
|
Total
|
|
|
AED’000
|
AED’000
|
AED’000
|
AED’000
|
|
|
|
|
|
|
|
1 April 2000 |
62,615
|
(1,064)
|
396,519
|
458,070
|
|
Profit for the year |
-
|
-
|
109,528
|
109,528
|
|
|
|
|
|
|
|
Dividend |
-
|
-
|
(40,000)
|
(40,000)
|
|
Additions during the year |
-
|
(3,480)
|
-
|
(3,480)
|
|
|
|
|
|
|
|
1 April 2001 |
62,615
|
(4,544)
|
466,047
|
524,118
|
|
Profit for the year |
-
|
-
|
134,767
|
134,767
|
|
|
|
|
|
|
|
Dividend |
-
|
-
|
(40,000)
|
(40,000)
|
|
|
|
|
|
|
|
Additions during the year |
-
|
(703)
|
-
|
(703)
|
|
|
|
|
|
|
|
31 March 2002 |
62,615
|
(5,247)
|
560,814
|
618,182
|
Consolidated
statement of cash flows for the year ended 31 March 2002
|
|
2002
|
2001
|
|
|
AED’000
|
AED’000
|
|
Operating activities |
|
|
|
Profit for the year |
134,767
|
109,528
|
|
Adjustments for: |
|
|
|
Depreciation (Note 4) |
64,535
|
59,120
|
|
Interest income |
(17,372)
|
(28,745)
|
|
Transfer to provident fund and end of service benefit
provision |
24,757
|
23,834
|
|
Associated companies - share of results |
(4,619)
|
(1,471)
|
|
Profit on sale of property, plant and equipment |
(335)
|
(2,497)
|
|
|
|
|
|
Operating cash flows before working capital changes |
201,733
|
159,769
|
|
Contributions to provident fund and end of service benefit
payments |
(11,374)
|
(15,526)
|
|
Changes in working capital: |
|
|
|
Inventories |
1,125
|
(458)
|
|
Trade and other receivables |
4,155
|
(5,978)
|
|
Trade and other payables |
10,883
|
22,426
|
|
|
|
|
|
Net cash provided from operating activities |
206,522
|
160,233
|
|
|
|
|
|
Investing activities |
|
|
|
Purchase of property, plant and equipment (Note 4) |
(65,075)
|
(53,441)
|
|
Proceeds from sale of property, plant and equipment |
405
|
3,014
|
|
Acquistion of subsidiary (Note 16) |
-
|
(3,042)
|
|
Emirates account |
2,969
|
5,453
|
|
Interest income |
15,910
|
23,792
|
|
Dividends received from associates |
1,781
|
500
|
|
Net cash used in investing activities |
(44,010)
|
(23,724)
|
|
|
|
|
|
Financing activities |
|
|
|
Dividend paid |
(40,000)
|
(40,000)
|
|
|
|
|
|
Net increase in cash and cash equivalents |
122,512
|
96,509
|
|
Cash and cash equivalents at beginning of year |
341,539
|
247,954
|
|
Effect of exchange rate changes |
(773)
|
(2,924)
|
|
|
|
|
|
Cash and cash equivalents at end of year (Note 14) |
463,278
|
341,539
|
Principal
accounting policies
A summary
of the principal accounting policies, which have been applied
consistently, is set out below.
Basis
of preparation
The consolidated financial statements have been prepared in
accordance with and comply with International Accounting Standards.
The consolidated financial statements are prepared in accordance
with the historical cost convention.
Basis
of consolidation
The consolidated financial statements of Dnata comprise Dnata,
Dnata World Travel and its subsidiary companies, together
with Dnata’s share of results for the year of its associated
companies. All material inter company transactions, balances
and unrealised surpluses and deficits on transactions between
Dnata and its subsidiaries and associates have been eliminated.
Revenue
Operating revenue is recognised in the year in which it is
earned and is stated after deduction of discounts. Information
technology services are billed progressively and recognised
as income on a systematic basis.
Foreign
currency
Foreign currency transactions are translated into UAE Dirhams
at rates approximating those ruling on the transaction dates.
Monetary assets and liabilities denominated in foreign currencies
are translated into UAE Dirhams at the rate ruling at the
balance sheet date. Translation differences relating to the
investments in associates and subsidiaries are classified
as equity until the disposal of the investment. All other
exchange differences are dealt with in the income statement.
Property,
plant and equipment
Property, plant and equipment is stated at cost less accumulated
depreciation. Cost consists of purchase cost, together with
any incidental expenses of acquisition.
Depreciation
is calculated so as to write off the cost of property, plant
and equipment on a straight line basis over the estimated
useful lives of the assets concerned. The estimated useful
lives are:
| Buildings |
5
- 20 years |
| Airport
plant and equipment |
5
years |
| Office
equipment and furniture |
3
- 5 years |
| Motor
vehicles |
5
years |
Major
modifications and improvements to property, plant and equipment
are capitalised and depreciated over the remaining useful
life of the asset.
Capital
projects
Capital projects are stated at cost. When commissioned, capital
projects are transferred to the appropriate property, plant
and equipment category and depreciated in accordance with
Dnata’s policies.
Investments
in associates
Investments in associates are accounted for in accordance
with the equity method.
A listing
of associated companies is shown in Note 5.
Held-to-maturity
investment
Investments with determinable payments and fixed maturity
are classified as held-to-maturity investments where management
has a positive intent and ability to hold the investment to
maturity. Such investments are stated at amortised cost using
the effective interest method.
Inventories
Inventories are stated at the lower of cost or net realisable
value. Cost is determined on the weighted average cost basis.
End
of service benefit provision
Provision for end of service benefit for employees based in
the UAE is as per UAE labour law and is based on periods of
cumulative service and employees’ current basic salary.
Provision
for end of service benefit for employees based outside the
UAE is made in accordance with the relevant local regulations.
Provident
fund
Senior employees who are based in the UAE and all UAE national
employees are entitled to participate in a provident fund
to which Dnata contributes. Dnata guarantees these employees
will receive at the end of their contracts, at a minimum,
benefits equal to their end of service benefit entitlements
in accordance with their contracts of employment. Contributions
to the provident fund are charged to the income statement
in the period in which they fall due.
Cash
and cash equivalents
For the purpose of reporting cash flows, Dnata considers all
cash and liquid funds with an original maturity of less than
three months and bank overdrafts to be cash and cash equivalents.
Notes
to the consolidated financial statements for the year ended
31 March 2002
1.
Establishment and operations
Dnata comprises Dnata, Dnata World Travel and its subsidiaries
and associated companies which are set out in Note 5. Dnata
was incorporated in the emirate of Dubai, with limited liability,
under an Emiri Decree issued by H.H. Sheikh Maktoum bin Rashid
Al-Maktoum on 4 April 1987. On that date, Dnata took over
for nil consideration, the total assets and liabilities of
Dubai National Air Travel Agency with effect from 1 April
1987.
Dnata
World Travel was incorporated in the emirate of Dubai, with
limited liability, by an Emiri Decree issued by H.H. Sheikh
Maktoum bin Rashid Al-Maktoum on 27 February 1989.
The main
activities of Dnata comprise:
- aircraft
handling services at Dubai International Airport
- engineering
services to airlines using Dubai International Airport
- sale
of air tickets on behalf of airlines as general sales agent
and as an agent
- other
travel related and event management services
- handling
services for cargo exported and imported through Dubai International
Airport
- management
of the Dubai Airline Centre
- information
technology services to Emirates and other third parties
- freight
clearing and forwarding services through its associated
company Dubai Express L.L.C., a company incorporated in
the United Arab Emirates
- handling
and engineering services at international airports in Pakistan,
through its associated company Gerry’s Dnata (Private)
Ltd., a
company incorporated in Pakistan
- handling
and engineering services at Ninoy Aquino airport in Manila,
through its subsidiary company Dnata-Wings Aviation Systems
Corporation, a company incorporated in the Philippines
- travel
agency activity in the United Kingdom through Dnata World
Travel’s subsidiary company, Dnata Travel (UK) Ltd.,
a company incorporated in the United Kingdom.
2. Operating revenue
|
|
2002
|
2001
|
|
|
AED’000
|
AED’000
|
|
Airport operations |
299,994
|
290,416
|
|
Information technology |
154,954
|
121,704
|
|
Cargo |
133,341
|
109,594
|
|
Reservations system |
85,890
|
64,429
|
|
Agency commission |
69,116
|
72,892
|
|
Property rentals |
24,214
|
20,227
|
|
Other |
22,175
|
22,972
|
|
|
789,684
|
702,234
|
|
|
|
|
3. Operating costs
|
|
|
|
Employee (see below) |
433,693
|
401,419
|
|
Depreciation |
64,535
|
59,120
|
|
Accommodation |
38,125
|
33,940
|
|
Corporate overheads |
149,011
|
136,981
|
|
|
685,364
|
631,460
|
(a) Employee
costs include AED 19.4 million (2001: AED 19.2 million) in
respect of end of service benefit provision, AED 5.4 million
(2001: AED 4.7 million) in respect of provident fund contributions
and AED 11.5 million (2001: AED 11.1 million) in respect of
Dnata’s profit share scheme.
(b) Average
employee strength during the year was 6,526 (2001: 6,001).
Back
to Top
4.
Property, plant and equipment
|
|
Buildings
|
Airport
plant and
equipment
|
Office
equipment
and furniture
|
Motor vehicles
|
Capital projects
|
Total
|
|
|
AED’000
|
AED’000
|
AED’000
|
AED’000
|
AED’000
|
AED’000
|
|
Cost |
|
|
|
|
|
|
|
1 April 2001 |
21,713
|
153,404
|
301,117
|
11,103
|
5,799
|
493,136
|
|
Additions |
80
|
23,268
|
24,061
|
2,582
|
15,084
|
65,075
|
|
Transfers from capital projects |
-
|
-
|
12,144
|
-
|
(12,144)
|
-
|
|
Disposals |
-
|
(2,399)
|
(2,248)
|
(392)
|
-
|
(5,039)
|
| |
