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Independent Auditors’ Report
Consolidated Statement of Financial Position
as at 31 December 2012
BD’000
Independent auditors’ report to the shareholders
Bahrain Telecommunications Company BSC
Manama, Kingdom of Bahrain
Report on the consolidated nancial
statements
We have audited the accompanying
consolidated nancial statements
of Bahrain Telecommunications
Company BSC (“the Company”) and
its subsidiaries (together the “Group”),
which comprise the consolidated
statement of nancial position as at 31
December 2012, and the consolidated
statements of comprehensive income,
changes in equity and cash ows
for the year then ended, and notes,
comprising a summary of signi cant
accounting policies and other
explanatory information.
Responsibility of the board of
directors for the consolidated
nancial statements
The board of directors is responsible
for the preparation and fair
presentation of these consolidated
nancial statements in accordance
with International Financial Reporting
Standards, and for such internal control
as the board of directors determines is
necessary to enable the preparation of
consolidated nancial statements that
are free from material misstatement,
whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an
opinion on these consolidated nancial
statements based on our audit. We
conducted our audit in accordance with
International Standards on Auditing.
Those standards require that we
comply with ethical requirements and
plan and perform the audit to obtain
reasonable assurance about whether
the consolidated nancial statements
are free from material misstatement.
An audit involves performing
procedures to obtain audit evidence
about the amounts and disclosures in
the consolidated nancial statements.
The procedures selected depend on our
judgment, including the assessment of
the risks of material misstatement of
the consolidated nancial statements,
whether due to fraud or error. In
making those risk assessments, we
consider internal control relevant
to the entity’s preparation and fair
presentation of the consolidated
nancial statements 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 entity’s
internal control. An audit also includes
evaluating the appropriateness
of accounting policies used and
the reasonableness of accounting
estimates made by management,
as well as evaluating the overall
presentation of the consolidated
nancial statements.
We believe that the audit evidence
we have obtained is suf cient and
appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the consolidated
nancial statements present fairly, in
all material respects, the consolidated
nancial position of the Group
as at 31 December 2012, and its
consolidated nancial performance
and its consolidated cash ows for
the year then ended in accordance
with International Financial Reporting
Standards.
Report on other regulatory
requirements
As required by the Bahrain Commercial
Companies Law we report that
the Company has maintained
proper accounting records and the
consolidated nancial statements
are in agreement therewith; the
nancial information contained in the
chairman’s report is consistent with
the consolidated nancial statements;
we are not aware of any violations of
the Bahrain Commercial Companies
22 January 2013
Law or the terms of the Company’s
memorandum and articles of
association having occurred during the
year that might have had a material
adverse effect on the business of the
Company or on its nancial position;
and satisfactory explanations and
information have been provided to us
by the management in response to all
our requests.
KPMG Fakhro 5th Floor,
Chamber of Commerce Building,
P.O. Box 710, Manama,
Kingdom of Bahrain.
Note 2012 2011
ASSETS
Non-current assets
P roperty and equipment 5 185,865 185,019
Goodwill 6 124,377 124,682
Intangible asset 7 50,880 24,308
Investment in associates 8 77,417 78,580
Deferred tax asset 14 2,298 2,018
Available-for-sale investments 9 31,640 16,703
Total non-current assets 472,477 431,310
Current assets
Investment classi ed as held- for- sale 9 - 46,473
Inventories 2,630 1,869
Available-for-sale investments 9 3,770 -
Trade and other receivables 10 115,569 71,762
Cash and bank balances 11 94,922 107,893
Total current assets 216,891 227,997
Total assets 689,368 659,307
EQUITY AND LIABILITIES
Equity
Share capital 16 144,000 144,000
Statutory reserve 17 76,847 76,719
General reserve 17 39,444 30,000
Foreign currency translation reserve 361 787
Investment fair value reserve (2,403) (3,397)
Retained earnings 256,099 257,731
Total equity attributable to equity holders of the Company 514,348 505,840
Non-controlling interest 5,833 12,851
Total equity (Page 46) 520,181 518,691
Non-current liabilities
Trade and other payables 12 2,029 2,555
Loans and borrowings 15 14,388 -
Deferred tax liability 14 3,634 4,193
Total non-current liabilities 20,051 6,748
Current liabilities
Trade and other payables 12 145,051 133,868
Loans and borrowings 15 4,085 -
Total current liabilities 149,136 133,868
Total liabilities 169,187 140,616
Total equity and liabilities 689,368 659,307
The consolidated nancial statements, which consist of pages 43 to 72 were approved by the Board of Directors on 22 January 2013
and signed on its behalf by:
Sh. Hamad bin Abdulla Al Khalifa
Chairman
Murad Ali Murad
Deputy Chairman
The accompanying notes 1 to 28 form an integral part of these consolidated nancial statements.
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Batelco
ANNUAL REPORT 2012
Batelco
ANNUAL REPORT 2012
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