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Notes to the Consolidated
Financial Statements
for the financial year ended December 31, 2016
1 Reporting entity
GB Auto Co. is an Egyptian joint stock company incorporated on 15 July 1999 under the name of GB Capital for Trading and
Capital Lease and under LawNo. 159 of 1981, andwas registered in the commercial register under No. 3422, Cairo.
Based on the decision of the Extraordinary General Assembly Meeting held on 26 April 2007, it has been agreed to change the
Company’s name to be GB Auto. This amendment was registered in the commercial register on 23May 2007.
The company is domiciled in the Industrial Zone – Abou Rawash Kilo meter 28 Cairo – Alexandria Desert Road, Arab
Republic of Egypt.
The company and its subsidiaries (will be referred to as “the Group”) main activities include trading, distributing and mar-
keting of all transportation means including heavy trucks, semi-trucks, passenger cars, buses, mini buses, micro buses, ag-
riculture tractors, pick-ups, mechanical tools equipment for sail movement and motors with their different structures and
types whether locallymanufactured and imported new and used ones and trading in spare parts, accessories whether locally
manufactured or imported and tires for vehicles and equipment whether locally manufactured or imported. The Group also
undertakes import and export activities, selling locally manufactured and imported products for cash, on credit or through
finance leasing and microfinance. Also trade in all goods including light truck and sale by instalments and provide services
of factoring and nonbanking financial services. The factoring services intended to buy existing and future rights of sellers of
goods and services and provide related services.
Themajor shareholders of the company areDr. Raouf Ghabbour and his familywho collectively owns approximately 54.41%of
the Company’s shares as at December 31, 2016.
The consolidated financial statements were authorized for issue by the Company’s Board of Directors onMarch 26, 2017.
2 Basis of preparation of consolidated financial statements
The consolidated financial statements have been prepared in accordance with an updated Egyptian Accounting Standards
(EAS) issued as per the decree of the minister of investment No. 110 for the year 2015, issued on 9 July 2015 and effective for
financial years commence on 1
st
January 2016 and the related Egyptian laws and regulations.
The Company’s management adopted the special accounting treatment stated in annex (A) of the modified Egyptian Ac-
counting Standard no. (13) as amended in 2015, “The Effects of Changes in Foreign Exchange Rates”, whereby both the cost
and accumulated depreciation of some fixed assets categories are modified using modification factors which are stated in the
above- mentioned annex, as described in details inNote (16).
3 Functional and presentation currency
The consolidated financial statements are presented in Egyptian Pounds which is the Group’s functional currency.
2016 ANNUAL REPORT
71
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2016
(In thenotes all amounts are shown inThousandEgyptianPounds unless otherwise stated)