Aamal
Announces the Results of Its Board of Directors Meeting
April 03, 2017
Aamal Company has announced the
results of its Board of Directors meeting held on 1/4/2017. The
Board adopted the following resolutions:
1. Amend the partnership
agreement with the partner in Senyar Industries Qatar Holding
WLL.
Aamal Company owns 50% of the
total shares of Senyar Industries Qatar Holding.
In line with the expansion plan to
be implemented by the company during the coming period by
entering into and establishing new industrial projects and in
order to improve the daily work of the company and run more
flexibility and considerations of raising the efficiency of work
and maximize the benefit of the technical expertise of the
partner. The Board of Directors has approved the amendment of
the partnership agreement with the partner in Senyar Industries
Qatar Holding, so that the control of the financial and
operating policies of this company is joint control among the
partners rather than under the control of Aamal Company (in
accordance with the previous agreement).
Note that this Agreement is
effective on 1 April 2017.
2. Amending the partnership
agreement with the partner in Advanced Pipes and Casts Company
W.L.L.
Aamal owns50% of the total shares
of Advanced Pipe and Casts Company.
In line with the expansion plan to
be implemented by the company during the coming period by
entering into and establishing new industrial projects and in
order to improve the daily work of the company and run more
flexibility and considerations of raising the efficiency of work
and maximize the benefit of the technical expertise of the
partner. The Board of Directors has approved the amendment of
the partnership Agreement with the partner in the Advanced
Pipeline and Cast Company, so that the control of the financial
and operating policies of this company is joint control among
the partners rather than under the control of Aamal Company (in
accordance with the previous agreement).
Note that this Agreement is
effective on 1 April 2017.
3. In implementation of the above
two agreements, Aamal Company will present both Senyar
Industries Qatar Holding WLL and Advanced Pipes and Casts
Company WLL as part of the joint ventures of the Company and not
as subsidiaries.
In accordance with paragraph B82
of IFRS # 10, the Company also discontinues the consolidation of
the financial statements of these two companies in the
consolidated financial statements of Aamal Company effective 1
April 2017 and will then be presented as equity-accounted
investees using the equity method in accordance with IFRS 11.
We would also like to emphasize
that these two agreements will have no effect on the shares
owned by Aamal in these companies or on the dividends or the
distribution method among the partners at all. Accordingly, the
equity attributable to the equity holders of the parent company,
as well as profit attributable to the equity holders of the
parent company and the basic and diluted earnings per share will
not be affected by these agreements. Nevertheless, the total
assets and liabilities will be affected by this change in
accounting method. Derecognizing these two companies as
subsidiaries and recognizing the mas equity-accounted investees
using the equity method at fair value on this date might result
in gain or loss as a result of the difference between the fair
value and the book value of these companies. The fair value for
these two companies will be measured at the earliest possible
time and any gain or loss will be recognized in the next
published financial statements for Aamal Company.
4.Liquidation of Johnson Controls
Qatar WLL.
Johnson Controls Qatar Limited is
a limited liability company with a capital of QR2,000,000 and a
total equity of QR 1,276,166 according to the latest audited
financial statements of the Company. Aamal holds 51% of the
company's total shares.
The partner of Johnson Controls
Qatar has submitted to the Board of Directors of Aamal Company a
proposal to liquidate and dissolve the company. This demand was
based on the company's successive losses in previous years as
well as the lack of viable projects at the moment and the
absence of a future business plan that would support the
continued operation of the company.
After reviewing this proposal,
the Board approved the proposal to dissolve and liquidate
Johnson Controls Qatar WLL in accordance with the provisions of
the Companies Law and the Company's Memorandum of Association.
This matter shall be coordinated with the Partner in order to
convene an Extraordinary General Assembly to agree on details
and next procedures.
5.Discussion of the proposed
liquidation of Aamal Optical Supplies WLL.
Aamal Optical Supply is a limited
liability company with a capital of QR 1,000,000 and a total
equity of QR 973,874 according to the latest audited financial
statements of the Company. Aamal holds 51% of the company's
total shares.
Since its establishment in
September 2014, the company has not undertaken any business or
activity, which led the partners to submit to Aamal a proposal
to liquidate the company.
The Board directed the executive
Management of Aamal Company to study the feasibility of this
proposal and then make the necessary recommendations in this
regard, whether there is a useful benefit from the continuity of
the company or not.
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