XPAND ADVISORY S.P.C. (A Single person Company) MANAMA KINGDOM OF BAHRAIN FINANCIAL STATEMENTS 31st DECEMBER, !

11

XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&#

Commercial Registration No.

54153 - 01

Proprietor

Naelah B hair Rashi! Al "hal!i

Registere! #$$ice

#$$ice 35% B il!ing &44' Roa! &(31 Bloc" 4&(% Al-See$ P. #. Bo): &0*5 +anama - ,ing!om #$ Bahrain -thmaar Ban" , .ait /inance 0o se +oore Stephens 1l 2 Saye! 1l-Ayo ty 3 Co% Certi$ie! P 4lic Acco ntants P.#. Bo) : 11('* +anama 2 ,ing!om o$ Bahrain.

Ban"ers

A !itors

XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&#

INDEX

P"'- N). A !itor5s Report Statement o$ /inancial position Statement o$ Comprehensi6e -ncome Statement o$ Cash /lo.s Notes to the /inancial Statements 12& 3 4 5 '2*

A.DITORS/ REPORT TO THE PROPRIETOR XPAND ADVISORY S.P.C. MANAMA % KINGDOM OF BAHRAIN R-0),t )# t+- *&#"#1&"2 St"t-$-#ts 7e ha6e a !ite! the /inancial Statements o$ XPAND ADVISORY S.P.C. .hich comprise the Statement o$ /inancial position at 31st 8ecem4er% &011% the relate! Statement o$ Comprehensi6e -ncome% the Statement o$ Cash /lo.s $or the year then en!e! an! a s mmary o$ signi$icant acco nting policies an! other e)planatory notes set o t on pages 93: to 9*:. B)",( )* D&,-1t),s ,-s0)#s&3&2&t4 *), t+- *&#"#1&"2 st"t-$-#ts ;he Boar! o$ 8irectors is responsi4le $or the preparation an! $air presentation o$ these $inancial statements in accor!ance .ith -nternational /inancial Reporting Stan!ar!s. ;his responsi4ility incl !es implementing an! maintaining internal controls rele6ant to the preparation an! $air presentation o$ $inancial statements that are $ree $rom material misstatements% .hether ! e to $ra ! or error% selecting an! applying appropriate acco nting policies% an! ma"ing acco nting estimates that are reasona4le in the circ mstances. A5(&t),s/ ,-s0)#s&3&2&t4 # r responsi4ility is to e)press an opinion on these $inancial statements 4ase! on o r a !it. 7e con! cte! o r a !it in accor!ance .ith the -nternational Stan!ar!s on A !iting. ;hose stan!ar!s re< ire that .e comply .ith ethical re< irements an! plan an! per$orm the a !it to o4tain reasona4le ass rance .hether the $inancial statements are $ree $rom material misstatements. An a !it in6ol6es per$orming proce! res to o4tain a !it e6i!ence a4o t the amo nts an! !isclos res in the $inancial statements. ;he proce! re selecte! !epen!s on the a !itor5s = !gment% incl !ing the assessment o$ the ris" o$ material misstatements o$ the $inancial statements% .hether ! e to $ra ! or error. -n ma"ing those ris"s assessments% the a !itor5s consi!ers internal controls rele6ant to the entity5s preparation an! $air presentation o$ the $inancial statements in or!er to !esign a !it proce! res that are appropriate in the circ mstances% 4 t not $or the p rpose o$ e)pressing an opinion on the e$$ecti6eness o$ the entity5s internal controls. An a !it also incl !e e6al ating the appropriateness o$ acco nting policies se! an! the reasona4leness o$ acco nting estimates ma!e 4y the management% as .ell as e6al ating the o6erall presentation o$ the $inancial statements. 7e 4elie6e that the a !it e6i!ence .e ha6e o4taine! is s $$icient an! appropriate to pro6i!e a 4asis $or o r a !it opinion.

O0&#&)# -n o r opinion% the $inancial statements present $airly% in all material respects% the $inancial position o$ the Company as at 31st 8ecem4er% &011 an! the res lts o$ its operations an! its cash $lo.s $or the year then en!e! in accor!ance .ith -nternational /inancial Reporting Stan!ar!s. R-0),t )# t+- ,-'52"t),4 ,-65&,-$-#ts 7e ha6e o4taine! all in$ormation an! e)planations .hich are necessary $or the p rpose o$ the a !it an! to the 4est o$ o r "no.le!ge an! 4elie$% no 6iolation o$ the constit tion o$ the company came to o r attention .hich .o l! materially a$$ect the Company5s $inancial position. -n a!!ition% .e report that nothing has come to o r attention .hich ca ses s to 4elie6e that the Company has 4reache! any o$ the applica4le pro6ision o$ the Bahraini Commercial Companies >a. No. &1 o$ &001% or o$ its Articles o$ Association .hich .o l! materially a$$ect its acti6ities or its $inancial position as at 31 st 8ecem4er% &011.
MOORE STEPHENS

EL%SAYED EL% AYO.TY 7 CO.

C1R;-/-18 P?B>-C ACC#?N;AN;S

M)+"$$-( E2%S+"4-3 K&#'()$ )* B"+,"&#8 @th Aan% &013

9&:

XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&# STATEMENT OF FINANCIAL POSITION "s "t 31st D-1-$3-,, !11
9Amo nts are e)presse! in Bahraini 8inars: N)t-s !11 !1!

ASSETS N)# C5,,-#t "ss-ts Property% Plant an! 1< ipment C5,,-#t Ass-ts Acco nts an! #ther Recei6a4les 8 e $rom Relate! Parties Ban" 4alances T)t"2 C5,,-#t "ss-ts T)t"2 Ass-ts
PROPRIETOR/S F.NDS AND LIABILITIES

3 4 5 '

*%113 1(%3'4 5(%*&0 11'%0'' 1*3%350 ! ,9:3

11%@5@ &*%5(( 33%'4* 34%0'1 *@%&*( 1!;,!<<

P,)0,&-t),/s F5#(s Capital Stat tory Reser6e C rrent Acco nt T)t"2 P,)0,&-t),/s F5#(s L&"3&2&t&-s N)# % C5,,-#t L&"3&2&t&-s ;erm >oan Sta$$ ;erminal Bene$its T)t"2 N)# % C5,,-#t L&"3&2&t&-s C5,,-#t L&"3&2&t&-s ;erm >oan 8 e to Relate! Party Acco nts an! other paya4les T)t"2 C5,,-#t L&"3&2&t&-s T)t"2 L&"3&2&t&-s T)t"2 P,)0,&-t),/s F5#(s "#( 2&"3&2&t&-s N"-2"+ B5+"&, R"s+&( A2 =+"2(&

@ ( *

50%000 15%133 (5%*@1 151%104

50%000 *%5(5 3'%03* *5%'&4

10

--3%(*1 3%(*1

3%550 &%(04 '%354 &%'40 4%000 43@ @%0@@ 13%431 1!;,!<<

10 11 1&

3%550 --43%*1( 4@%4'( 51%35* ! ,9:3

The accompanying notes from ( 1 ) to ( 15 ) form an integral part of these Financial Statements

93:

XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&# STATEMENT OF COMPREHENSIVE INCOME

F), t+- 4-", -#(-( 31st D-1-$3-,, !11

9Amo nts are e)presse! in Bahraini 8inars: N)t-s !11 !1!

INCOME Cons ltancy -ncome Cost o$ cons ltancy G,)ss 0,)*&t #ther -ncome

13

&0&%344 91&0%45&: (1%(*& 5@%0&( 13(%*&0

&3%335 9'%(00: 1'%535 31%@45 4(%&(0 '4%331 4%0&1 '(%35& ( !,!A )

EXPENSES Beneral an! A!ministration 8epreciation T)t"2 ->0-#s-s N-t P,)*&t ? (L)ss) A00,)0,&"t&)#8 Stat tory reser6e C rrent Acco nt

14

@*%4@1 3%*'* (3%440 <<,9@!

( *

5%54( 4*%*3& <<,9@!

--9&0%0@&: ( !,!A )

N"-2"+ B5+"&, R"s+&( A2 =+"2(& The accompanying notes from ( 1 ) to ( 15 ) form an integral part of these Financial Statements

94:

XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&# STATEMENT OF CASH FLOBS

F), t+- 4-", -#(-( 31st D-1-$3-,, !11

9Amo nts are e)presse! in Bahraini 8inars:

!11 O0-,"t&#' "1t&C&t&-s Net Pro$it C 9>oss: A(D5st$-#ts8 8epreciation Changes in Operating Assets and Liabilities :Acco nts an! other recei6a4les 8 e $rom Relate! Parties 8 e to Relate! Party Acco nts an! other paya4les Sta$$ ;erminal Bene$its N-t 1"s+ *,)$ ? (5s-( &#) O0-,"t&#' A1t&C&t&-s I#C-st&#' A1t&C&t&-s Ac< isition o$ Property% Plant an! 1< ipment N-t C"s+ (5s-( &#) I#C-st&#' A1t&C&t&-s F&#"#1&#' A1t&C&t&-s Net mo6ement in C rrent Acco nt ;erm loan N-t 1"s+ (5s-( &#) ? *,)$ F&#"#1&#' A1t&C&t&-s N-t &#1,-"s- ? ((-1,-"s-) &# 1"s+ "#( 1"s+ E65&C"2-#ts Cash an! cash 1< i6alents at the 4eginning o$ the year C"s+ "#( 1"s+ E65&C"2-#ts "t t+- -#( )* t+- 4-", C)$0,&s&#' 8 Ban" Balances 55%4(0 3%*'* 11%&&4 9&5%&@1: 94%000: 43%4(1 1%0(@ (5%*@0 91%3&5: 91%3&5: --9&%'40: 9&%'40: (&%005 34%0'1 11:,!::

!1! 9&0%0@&: 4%0&1 915%'1&: 1(%533 9&5%(03: 9444: 1%0@' 93(%301: 9(%4(3: 9(%4(3: &*%(03 '%1*0 35%**3 910%@*1: 44%(5& 39,!:1

11'%0'' 11:,!::

34%0'1 39,!:1

95:

XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&# NOTES TO THE FINANCIAL STATEMENTS % 31 D-1-$3-,, !11
1. ACTIVITIES8 XPAND ADVISORY S.P.C is a single person company registere! .ith the ministry o$

in! stry an! Commerce n!er commercial registration no. 54153-1 !ate! &4C0@C&004 ;he company is engage! in the 4 siness o$: i: -mport% 1)port an! sale o$ comp ter har!.are an! systems accessories. ii: +anagement an! B siness a!ministration cons ltants. iii: Pro6i!ing technical an! technological a!6ice an! con! cting st !ies. i6: #rganiDing Con$erences 3 #ccasions. 6: Bro"ers 4et.een /oreign companies an! National /irms
. S.MMARY OF SIGNIFICANT ACCO.NTING POLICIES8

?1. A11)5#t&#' C)#C-#t&)#8 ;he /inancial Statements ha6e 4een prepare! n!er the E0istorical Cost Con6entionE an! on accr al 4asis. ? . P,)0-,t4, P2"#t "#( E65&0$-#t8 /i)e! Assets are state! at Cost >ess 8epreciation .hich is pro6i!e! on Cost on the EStraight >ine +etho!E at the $ollo.ing ann al rates: #$$ice 1< ipment / rnit re an! /i)t res Comp ter 1< ipment +otor Gehicles &0F &0F 33.33F &0F

?3. C"s+ "#( 1"s+ E65&C"2-#ts 8 Cash an! cash 1< i6alents comprise o$ Cash at Ban"s. ?9. St"** T-,$&#"2 B-#-*&ts8 Pro6ision has 4een ma!e $or amo nts paya4le n!er the Bahraini >a4o r la. applica4le to the employees acc m late! years o$ ser6ice at !ate o$ the /inancial Position. ?<. I#1)$- ,-1)'#&t&)#8 Cons ltancy -ncome on pro=ects is recogniDe! as re6en e on a percentage o$ completion metho!.

9':

XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&# NOTES TO THE FINANCIAL STATEMENTS 31st D-1-$3-,, !11
9Amo nts are e)presse! in Bahraini 8inars:

3.

PROPERTY, PLANT AND EE.IPMENT

P",t&152",s COST As at 1st Aan% &011 A!!itions ! ring the year As "t 31st D-1, !11 DEPRECIATION As at 1st Aan% &011 Charge $or the year As "t 31st D-1, !11 NET BOOK VAL.E As "t 31st D-1, !11 As at 31st 8ec% &010

O**&1E65&0$-# t 3%5@& --3%5@& 3%3*' '& 3%45( 119 1@'

F5,#&t5,"#( F&>t5,-s

C)$05t-, E65&0$-#t

M)t), C-+&12-s

T)t"2

'%135 --'%135 5%@(5 &10 5%**5 19! 350

'%(0@ 1%3&5 (%13& '%3&1 5&@ '%(4( 1, @9 4('

!11

15%(50 --15%(50 5%105 3%1@0 (%&@5 A,<A< 10%@45

!1!

3&%3'4 1%3&5 33%'(* &0%'0@ 3%*'* &4%5@' ;,113 11%@5@

9.

ACCO.NTS AND OTHER RECEIVABLES

;ra!e !e4tors #ther recei6a4les

3%045 15%31* 1@,3:9

4%*3' &4%'5& ;,<@@ &1%0&& 1%00& --11%'&5 33,:9;

<.

D.E FROM RELATED PARTIES

Nora) 7.>.> H tech B l$ #.l ;echnology 1 tech ;echnologies 7.>.>

1*%'00 1'%&@1 '%'00 1'%44* <@,; !

9@: XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&# NOTES TO THE FINANCIAL STATEMENTS 31st D-1-$3-,, !11
9Amo nts are e)presse! in Bahraini 8inars:

!11 :. BANK BALANCES

!1!

It+$"", B"#=8 C rrent Acco nt /i)e! 8eposit K5F"&t F&#"#1- H)5s-8 C rrent Acco nt /i)e! 8eposit

&%*0* *@%(3* 15%31( --11:,!::

&*' --13%&14 &0%551 39,!:1

A.

CAPITAL

;he Capital o$ the Company is B8 50%000 9Bahraini 8inar /i$ty ;ho san! #nly: !i6i!e! into 1%000 shares o$ B8. 50 each.
@. STAT.TORY RESERVE

?n!er the pro6isions o$ Bahrain Commercial Company >a. &001 an! the Articles o$ Association% 10F o$ the Net Pro$it $or the year is trans$erre! to the Stat tory Reser6e. ;he Company may resol6e to !iscontin e s ch trans$ers .hen the reser6e e< als to 50F o$ the Capital. ;his reser6e is not a6aila4le $or !istri4 tion e)cept in the cases stip late! 4y la. an! company5s Article o$ Association. #pening Balance Appropriation: page 94: *%5(5 5%54( 1<,133
;. PROPRIETOR/S C.RRENT ACCO.NT

*%5(5 --;,<@<

#pening 4alance Net +o6ement Appropriation: page 94:

3'%03* --4*%*3& @<,;A1

&'%30( &*%(03 9&0%0@&: 3:,!3;

1!. TERM LOAN

K5F"&t F&#"#1- H)5s-8 C rrent Portion Non 2 C rrent portion

3%550 --3,<<!

&%'40 3%550 :,1;!

9(: XPAND ADVISORY S.P.C., M"#"$" % K&#'()$ )* B"+,"&# NOTES TO THE FINANCIAL STATEMENTS 31st D-1-$3-,, !11
9Amo nts are e)presse! in Bahraini 8inars:

!11
11. D.E TO RELATED PARTY

!1! --%%% 4%000 9,!!!

1 tech ;echnology -nternational 7.>.>

1 . ACCO.NT AND OTHER PAYABLES

;ra!e Cre!itors #ther Paya4les Accr e! 1)penses

3@%@@3 '%145 --93,;1@

--114 3&3 93A

13. OTHER INCOME

Ser6ice charges -nterest recei6e! +iscellaneo s income

53%15* &%1&' 1%@44 <A,! ;

30%130 --1%'15 31,A9<

19.

GENERAL AND ADMINISTRATION EXPENSES

Sta$$ Costs Rent an! ?tilities +otor Gehicle 1)penses #ther 1)penses

4*%'10 @%331 1%''4 &0%('' A;,9A1

4*%3*0 @%@5* &%000 5%1(& :9,331

1<.

COMPARITIVE FIG.RES

;he $ig res $or the pre6io s year has 4een regro pe!% rearrange! an! reclassi$ie! .here e6er consi!ere! necessary to gi6e a tr e an! $air 6ie. an! ma"e it consistent .ith this years $ig re.

9*: