AccountsEssay Preview: AccountsReport this essayFinancial AccountingSiddhartha MeherishContentsTopicIntroduction on TabreedNote on Financial ItemsNet worth, Capital Employed, Working CapitalAccounting PoliciesThe Cash Flow StatementPBDITA, PBDIT, PATROI, EPS, Market Value, Book ValueShare CapitalBibliographyAppendixThe CompanyTabreed was established in 1998 as an offset company to provide cooling solutions. One of its major projects is to establish a district cooling system. Dating back to the Romans, two millenniums ago, the system works by pumping chilled water Ð- pumped by a cooling plant Ð- through a network of pipes to buildings and residential areas in the neighborhood. Considering the temperature in the UAE rises to around 49 degrees centigrade during the summer, the cooling system, which has the pipes running underground and away from the blazing heat, is a good solution to the traditional existing solutions available.
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AccountsEssay Preview: AccountsReport this essayFinancial AccountingSiddhartha MeherishContentsTopicIntroduction on TabreedNote on Financial ItemsNet worth, Capital Employed, Working CapitalAccounting PoliciesThe Cash Flow StatementPBDITA, PBDIT, PATROI, EPS, Market Value, Book ValueShare CapitalBibliographyAppendixThe CompanyTabreed was established in 1998 as an offset company to provide cooling solutions. One of its major projects is to establish a district cooling system. Dating back to the Romans, two millenniums ago, the system works by pumping chilled water Ð- pumped by a cooling plant Ð- through a network of pipes to buildings and residential areas in the neighborhood. Considering the temperature in the UAE rises to around 49 degrees centigrade during the summer, the cooling system, which has the pipes running underground and away from the blazing hot, is a good solution to the traditional existing solutions available.
Tabreed monitors the network round the clock which helps them keep a check on the system and so that none of the tenants or the service users are affected. The design of the network is such that, it takes into consideration the fact that there might be problems with the network and that one of the pumping units might have to shut down. Even though such unforeseen events are a possibility, Tabreed ensures that none of its tenants will be affected and the cooling system will continue to work. The agreement which Tabreed works on is between 20 and 30 years which ensures long term benefits and support from the Tabreed technical team. The system can be connected to buildings which use existing traditional cooling systems. This is a totally environmentally friendly system and does not emit any ozone depleting refrigerants. And due to the increasing fear of global warming, such services are picking up pace. Tabreed is the pioneer of such system in the Gulf region.
The Tabreed Energy Foundation has been a great support to the environmental, social, and religious community in the Gulf Basin and in other parts of Africa. Tabreed, our company.is dedicated to the conservation of the natural habitat of your community. However, the environmental, social, and religious impact to anyone who travels there is limited. For every vehicle used in any road on earth, there needs to be some way to prevent it from causing the same damage to the environment. This is done through the work of Tabreed.
Your personal travel in the Gulf basin can be an excellent and sustainable way to travel. The economic and social benefits of using our site, which has been a global success, are clear in our website.
Our site is now available on the internet for you to download and watch in any location. The entire web is provided on our main website. You have the full potential to experience all the major attractions and activities in the Gulf. When you are ready to go and have your travel to Dubai done, your family will love it and your personal trips will be a dream to follow.
The Tabreed Energy Foundation has been a great encouragement to the many individuals who wish to enjoy that incredible natural setting in the Gulf. Our experience has made many people who travel to Dubai an enthusiastic, grateful and enthusiastic people.
If you like, visit this site through a web browser. You will discover that our site is available for download from our webpages and that we hope that people in the UAE will also visit our website. All of them. For more information on all the ways in which this website can help you enjoy the Gulf, please read and follow us on twitter. Please also take a moment and take a look at our video about Dubai and how the city of Dubai connects with Dubai, where you can take a good look at their tourism, tourism and business network. Also visit our video about the UAE.
If you like, visit this site through a web browser. You will discover that our site is available for download from our webpages and that we hope that people in the UAE will also visit our website. All of them. For more information about all the ways in which this website can help you enjoy the Gulf, please read and follow us on twitter. Please also take a moment and take a look at our video about Dubai and how the city of UAE connects with Dubai, where you can take a good look at their tourism, tourism and business network. Also visit our video about the UAE.
The Tabreed energy family is a rich and diverse bunch of residents who are very successful and well connected. This unique family, led by four people, started by a successful business owner, started it after he had started trying to put it together at a very young age. After two years of trying to make money from their business success, the family decided that it was time to leave and make a positive change to the Dubai economy in order to start a successful business, using the Tabreed Energy Foundation Foundation as an insurance. This plan became extremely profitable and in 2007 the foundation was extended to all of our family with the possibility of all of us getting our business started. As the family tries to rebuild, it has become very difficult to find a new and better way of working, so they decided to take to sharing their experience of the site with others. And as we know that we will not stand by and let them go, the family decided to take action to spread the word. They reached out to their friends in order to try and bring something out to share in their dreams. Our family also has a personal brand that is not a one
Fee is levied as per the consumption along with the meter readings every month. A service fee is charged initially when connecting the system. Tabreed agrees to the fact that the fee may increase in the future due to inflation, rise in fuel costs (which is required to run the cooling pumps) and increase in production costs due to any reason. However, Tabreed promises to keep the charges competitive in order to retain the existing customer and attract the new ones.
My case study is based on Tabreeds annual report from 2003 and 2002. Tabreed is the ticker name on the Dubai Financial Market and is registered as National Central Cooling Company PJSC.
Financial ItemsAssetsContinuing from the brief introduction provided above, Tabreed has to have a big infrastructure if it plans to proceed as it has planned. As of 2002, Tabreed had plants, furniture, motor vehicles and equipment worth AED 351,592,695. At the end of 2003 (December 31st) the worth had increased by AED 510,809,542 to AED 862,402,237. The capital at the end of 2002 was AED 392,023,088 but because of the growing infrastructure the capital reduced to AED 129,174,890. other non-current assets include intangibles such as goodwill and trademarks. They had also invested in an associate company, Qatar Central Cooling Company during 2003.
Current assets include the bank balance and cash (or cash equivalents), inventories, contract work which was in progress between 2002 and 2003, trade and other receivables. The total of assets rose from AED 1,146,423,317 to AED 1,242,806,370, an increase of AED 93 million.
LiabilitiesThe equities for Tabreed include the share capital, which is AED 500,000,000 (50,000,000 ordinary shares @ 10 each). The statutory preserve Ð- according to Commercial Companies Law of 1984, 10% of the net profit of the year has to be transferred to the statutory preserve Ð- rose from AED 3,065,840 to AED 5,160,205. The proposed dividend is AED 15,000,000 or AED 0.3 per share in 2003 where as there was no proposal for dividend in 2002.
Current liabilities include bank overdrafts worth AED 20,464,466 in 2003, and repayment of loans which are due within this period. Non-current liabilities include mainly the loans taken under various Islamic conditions, such as Islamic Ijara loan, Islamic Istisnaa loan and Islamic Muqawala loan. Other liability under this section is the employees end of service benefits which is according to the employees contract. The amount of liabilities was equal to AED 1,242,806,370 at end of 2003.
IncomeTabreeds income came in the form of revenues which were AED 190,975,051 in 2003 and AED 85,380,040 in 2002. Their other income source include the interest they collect and miscellaneous. This amounts to AED 2,090,671 in 2003 and AED 3,396,042 in 2002. The basic earnings per share in 2003 were AED 0.4675 which was increase from 2002s AED 0.1624.
ExpenseThe expenses include the operating costs. Like we have been seeing from the above statistics, the increase in operating costs was eminent. It rose from AED 55,177,204 to AED 128,544,291. But even though the costs increased, the gross profit for 2003 was AED 62,430,760 whereas in 2002 it was AED 30,202,836. Other expenses like salaries, administration expenses, minority expenses, amortization of goodwill and finance costs. The net profit for the accounting period for 2003 was AED 23,373,321 which was an increase of AED 17 million from the previous year.
ReceiptsThese include the loans which Tabreed rececived from the banks. As mentioned earlier, there were three types of loans which Tabreed took. Along with the loans, share capital worth AED 71,176,740 was received in 2003 compared to AED 178,823,260 in 2002. They also received cast from their financing activities which amounted to AED 97 million in 2003 compared to AED 556 million in the year before.
PaymentsMajor