QATARI INVESTORS GROUP Q.P.S.C.
DOHA - QATAR
CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED
DECEMBER 31, 2024
QATARI INVESTORS GROUP Q.P.S.C.
CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT For the year ended December 31, 2024
INDEX | Page |
Independent auditor's report | -- |
Consolidated statement of financial position | 1 - 2 |
Consolidated statement of profit or loss and other comprehensive income | 3 |
Consolidated statement of changes in equity | 4 |
Consolidated statement of cash flows | 5 - 6 |
Notes to the consolidated financial statements | 7 - 69 |
Deloitte and Touche - Qatar Branch
Al Ahli Bank Building
Suhaim Bin Hamad Street
Al Sadd Area
Doha, P.O. Box 431
The State of Qatar
Tel: +974 443-41112
Fax:+974 4442 2131
www.deloitte.com
QR. 21398
RN: 451/JK/FY2025
INDEPENDENT AUDITOR'S REPORT
To the Shareholders of
Qatari Investors Group Q.P.S.C.
Doha - Qatar
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the consolidated financial statements of Qatari Investors Group Q.P.S.C. (the "Company"), and its subsidiaries (together the "Group") which comprise the consolidated statement of financial position as at December 31, 2024, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the other ethical requirements that are relevant to our audit of the Group's consolidated financial statements in Qatar, and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
Key Audit Matters (continued)
Key audit matter | How our audit addressed the key audit matter | |||||||||
Impairment of goodwill | ||||||||||
We tested the impairment models and the key | ||||||||||
As at December 31, 2024, the carrying value of | assumptions used by management with the | |||||||||
goodwill amounted to QR 230.5 million as | involvement of our valuation specialists. Our audit | |||||||||
disclosed in Note 8. | procedures included the following: | |||||||||
In accordance with IAS 36 Impairment of Assets, | • | Understanding | the | business process for the | ||||||
impairment assessment, identifying the relevant | ||||||||||
an entity is required to test goodwill acquired in a | ||||||||||
internal controls and assessing these controls to | ||||||||||
business | combination | for impairment | at | least | ||||||
determine if | they | had been appropriately | ||||||||
annually | irrespective | of | whether | there | is | any | ||||
designed and implemented. | ||||||||||
indication of impairment. | ||||||||||
An impairment is recognized on the consolidated | • Evaluating whether the cash flows in the models | |||||||||
used by management to calculate the recoverable | ||||||||||
statement | of financial | position | when | the | ||||||
value are in accordance with the requirements of | ||||||||||
recoverable amount is less than the net carrying | ||||||||||
IFRS Accounting Standards. | ||||||||||
amount in accordance with IAS 36, as described | ||||||||||
in note 8 to the consolidated financial statements. | • | Obtaining and analyzing the approved business | ||||||||
The determination of the recoverable amount is | plans for each such asset (or Cash Generating | |||||||||
mainly based on discounted future cash flows. | Unit, as applicable) to assess the accuracy of the | |||||||||
We considered the impairment of goodwill to be a | computations and the overall reasonableness of | |||||||||
key assumptions; | ||||||||||
key audit matter, given the method for | • | Comparing actual historical cash flow results | ||||||||
determining the recoverable amount and the | ||||||||||
significance of the amount in the Group's | with previous forecasts to assess forecasting | |||||||||
consolidated financial statements. | accuracy. | |||||||||
• Assessing the methodology used by the Group to | ||||||||||
estimate the Weighted Average Cost of Capital | ||||||||||
(WACC) and benchmarking that with discount | ||||||||||
rates used by other similar businesses and | ||||||||||
external sector related guidelines; | ||||||||||
• Benchmarking assumptions on long term growth | ||||||||||
rates of local GDP and long term inflation | ||||||||||
expectations with external sources of data | ||||||||||
published by global monetary agencies; and | ||||||||||
• Benchmarking the values with market multiples | ||||||||||
where applicable. | ||||||||||
We also performed sensitivity analyses on the key | ||||||||||
assumptions used by management to understand the | ||||||||||
extent to which these assumptions need to be | ||||||||||
adjusted before resulting in additional impairment | ||||||||||
loss. | ||||||||||
We assessed the disclosures in the consolidated | ||||||||||
financial statements relating to this matter against | ||||||||||
the requirements of IFRS Accounting Standards. | ||||||||||
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
Key Audit Matters (continued)
Key audit matter | How our audit addressed the key audit matter |
Valuation of investment properties | Our audit procedures included the following: |
The Group's investment property portfolio | We obtained an understanding of the process |
amounted to QR 838 million as at December 31, | adopted by management to determine the valuation |
2024 and the net fair value gain recorded in the | of investment properties and identified the key |
consolidated income statement amounted to QR | controls in this process. |
13.0 million as disclosed in Note 7. The Group | |
measures it investment properties at fair value. | We evaluated the abovementioned controls to |
determine if they had been designed and | |
The determination of fair value of these | implemented appropriately. |
investment properties is based on external | We assessed the valuer's competence, capabilities, |
valuations using market approach for the land and | |
the depreciated replacement cost based on cost | independence and objectivity and read their terms |
approach for the building | of engagement with the Group to determine that the |
scope of their work was sufficient for audit | |
The valuation of the portfolio is a significant | purposes. |
judgement area and is based on a number of | We agreed the total valuation in the valuers report |
assumptions. The existence of significant | |
estimation uncertainty warrants specific audit | to the amount reported in the consolidated |
focus in this area as any bias or error in | statement of financial position. |
determining the fair value could lead to a material | We tested the data provided to the valuer by the |
misstatement in the consolidated financial | |
statements. Consequently, we have identified this | Group, on a sample basis. |
as a key audit matter. | We involved our internal real estate valuation |
specialist to review selected properties valued by | |
external valuers and internally by management and | |
assessed whether the valuation of the properties was | |
performed in accordance with the requirements of | |
IFRS Accounting Standards. | |
Where we identified estimates that were outside | |
acceptable parameters, we discussed these with the | |
valuers and management to understand the rationale | |
behind the estimates made. | |
We performed sensitivity analyses on the | |
significant assumptions to evaluate the extent of | |
their impact on the determination of fair values. | |
We assessed the disclosures in the consolidated | |
financial statements relating to this matter to | |
determine if they were in accordance with the | |
requirements of IFRS Accounting Standards. | |
Other Information
Management is responsible for the other information. The other information comprises the Board of Directors' Report, but does not include the consolidated financial statements and our auditor's report thereon, which we obtained prior to the date of this auditor's report, and the Annual Report, which is expected to be made available to us after that date.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
Other Information (continued)
Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the complete Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB and their preparation in compliance with the applicable provisions of Qatar Commercial Companies' Law and the Company's article of association, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risk, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements (continued)
- Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represents the underlying transactions and events in a manner that achieves fair presentation.
- Plan and perform the Group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor's report unless law and regulations preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Further, as required by the Qatar Commercial Companies' Law, we report the following:
- We are of the opinion that proper books of account were maintained by the Company, physical inventory verification has been duly carried out and the contents of the director's report are in agreement with the Company's accompanying consolidated financial statements.
- We obtained all the information and explanations which we considered necessary for the purpose of our audit.
-
To the best of our knowledge and belief and according to the information given to us, no contraventions of the applicable provisions of Qatar Commercial Companies' Law and the
Company's Articles of Association were committed during the year which would materially affect the Group's consolidated financial position or its consolidated financial performance.
Doha - Qatar | For Deloitte & Touche |
January 30, 2025 | Qatar Branch |
Joseph Khalife
Partner
License No. 433
QFMA Auditor License No. 120156
QATARI INVESTORS GROUP Q.P.S.C.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended December 31, 2024
Notes | 2024 | 2023 | |||
QR. | QR. | ||||
Revenue | 28 | 501,358,928 | 515,232,078 | ||
Cost of revenue | 29 | (253,040,722) | (234,608,536) | ||
Gross profit | 248,318,206 | 280,623,542 | |||
Income from short-term deposits and saving | |||||
accounts | 23,123,509 | 29,584,750 | |||
Other income | 20,573,944 | 30,872,482 | |||
Investment income | 1,269,400 | 1,823,828 | |||
Net change in fair value of investment properties | 7 | 13,017,335 | (3,818,425) | ||
Share of (loss) / profit from investments in | 9 | ||||
associates | (4,121,903) | 12,781,473 | |||
Selling and distribution expenses | 30 | (6,319,901) | (2,606,719) | ||
General and administrative expenses | 31 | (87,659,351) | (104,270,818) | ||
Impairment of goodwill | 5&8 | -- | (12,000,000) | ||
Finance costs | (38,130,777) | (41,413,599) | |||
Net profit for the year before income tax | 170,070,462 | 191,576,514 | |||
Income tax expenses | 32 | (5,128,361) | (5,037,136) | ||
Net profit for the year after income tax | 164,942,101 | 186,539,378 | |||
Attributable to: | |||||
Owners of the Company | 165,280,565 | 186,506,615 | |||
Non-controlling interest | (338,464) | 32,763 | |||
Net profit for the year after income tax | 164,942,101 | 186,539,378 | |||
Other comprehensive income | |||||
Items that will not be reclassified to profit or | |||||
loss in subsequent periods | |||||
Net change in fair value of financial assets at | |||||
FVTOCI | 10 | (533,718) | 1,092,949 | ||
Items that may be reclassified to profit or loss in | |||||
subsequent periods | |||||
Change in fair value of cash flow hedging | |||||
derivative | 21 | (21,395,288) | (49,664,953) | ||
Total comprehensive income for the year after | |||||
income tax | 143,013,095 | 137,967,374 | |||
Attributable to: | |||||
Owners of the Company | 143,351,559 | 137,934,611 | |||
Non-controlling interest | (338,464) | 32,763 | |||
Total comprehensive income for the year after | |||||
income tax | 143,013,095 | 137,967,374 | |||
Basic and diluted earnings per share | 34 | 0.13 | 0.15 |
This statement has been prepared by the Group and stamped by the Auditors for identification purposes only.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS
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