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6. Finance costs
December 31,
2017
December 31,
2016
Interest income
27 588
12 605
Interest income on installment sales
8 075
3 360
Total Finance Income
35 663
15 965
Interest expense and bank charges
(1 313 734)
(657 296)
Foreign exchange differences
(91 831)
(1 212 021)
Total Finance Cost
(1 405 565)
(1 869 317)
Net Finance Cost
(1 369 902)
(1 853 352)
7. Provisions and impairment of current and non-current assets
Provisions no longer required
December 31,
2017
December 31,
2016
Warranty provision
-
2 767
Impairment of accounts and notes receivable
12 639
-
Impairment of debtors and other debit balances
2 500
-
Other Provisions
522
-
Litigation provision
-
23
Total provisions no longer required
15 661
2 790
Provisions formed
December 31,
2017
December 31,
2016
Warranty provision
(65 160)
(48 309)
Impairment of accounts and notes receivable
(60 031)
(84 957)
Impairment of debtors and other debit balances
(725)
-
Litigation provision
(200)
(520)
Impairment of due from related parties
(16 510)
-
Other provisions
(76 399)
(53 860)
Total provisions formed
(219 025)
(187 646)
Net provisions in the income statement
(203 364)
(184 856)
•
The movement of current and non-current assets impairment represented as follow:
Balance at
1/1/2017
Impairment
during the
year
Used during
the year
Reversal of
Impairment
during the year
Effect of
movements of
exchange rates
Balance at
31/12/2017
Impairment of Accounts
&Notes receivable
379 729
60 031
(74)
(12 639)
(5 955)
421 092
Impairment of due from
related parties
-
16 510
-
-
(256)
16 254
Impairment of Debtors &
Other debit balances
7 907
725
-
(2 500)
836
6 968
387 636
77 266
(74)
(15 139)
(5 375)
444 314
Impairment of Inventory*
127 124
42 330
-
(40 071)
(4 016)
125 367
514 760
119 596
(74)
(55 210)
(9 391)
569 681
*The formation and reversal of inventory impairment are charged in cost of revenue at income statement.
8. Earnings / (Loss) per share
i. Basic
Since there is no suggested dividends account, accordingly the base used to calculate the net profit/(Loss) available
for the shareholders was determined based on the net profit/(Loss) for the year without deducting the employees
share and the board of director’s bonus.
Basic earnings per share is calculated by dividing net profit/(Loss) for the period (as it is shown in the previous para-
graph), by the weighted average number of ordinary shares issued during the year.
December 31,
2017
December 31,
2016
Net (loss) for the year attributable to the shareholders
(666 900)
(865 656)
Weighted average number of ordinary shares issued
1 094 010
1 067 504
Basic (loss) per share/ EGP
(0.61)
(0.81)
9. Income tax
A. Income tax liabilities
December 31,
2017
December 31,
2016
Balance at 1 January
98 115
61 555
Taxes paid during the year
(102 795)
(64 275)
Current income tax during the year (Note 9-C)
84 977
100 835
Effect of movement of exchange rates
268
-
Balance at the end of the year
80 565
98 115
76 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 77
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2017
(In the notes all amounts are shown in Thousand Egyptian Pounds unless otherwise stated)