Nasr City Cons 12 2020E

Nasr City - Cons 12-2020E
MADINET NASR FOR HOUSING AND

DEVELOPMENT S.A.E.
SUMMARIZED CONSOLIDATED
FINANCIAL STATEMENTS
AND AUDITOR’S REPORT THEREON
AT 31 DECEMBER 2020
Madinet Nasr for Housing and Development S.A.E.
CONSOLIDATED FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2020
Contents Page Number
- Auditor’s Report 1
- Statement of Financial Position 2-3
- Statement of Income (Profit or Loss) 4
- Statement of Comprehensive Income 5
- Statement of Changes in Equity 6
- Statement of Cash Flows 7-8
- Notes to the Financial Statements 9-46

Translation of Financial Statements Originally issued in Arabic

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 31 December 2020
31/12/2020 31/12/2019
Note L.E. L.E.
Assets
Non-Current Assets
Fixed assets (Net) 4/1 60,103,589 65,764,738
Fixed assets under construction 4/2 639,583 17,826,517
Intangible assets 5 5,371,282 7,188,415
Held to maturity investments 6/1 566,968 672,200
Available for sale investments 6/2 4,733,310 4,833,310
Investments properties 6/3 3,986,925 4,222,895
Long term notes receivable (Net) 9 7,316,556,687 6,524,381,851
Deferred tax asset 34 20,611,743 6,084,211
Total Non-Current Assets 7,412,570,087 6,630,974,137
Current Assets
Inventories 7 54,528,068 57,651,705
Lands and unfinished properties – WIP 8 5,191,757,983 2,874,935,949
Finished properties 8 227,044,604 78,958,430
Work in progress 29,891,733 -
Short term notes receivable 9 2,698,170,831 2,447,017,650
Trade receivables (Net) 9 965,669,196 984,507,092
Trade payables – debit balances (Net) 10 532,068,267 754,939,191
Debtors and other debit balances 11 367,620,378 356,201,796
Cash margin on letters of guarantee 2,158,252 12,290,918
Tax Authority 7,547,099 3,896,666
Investments at fair value through profit and loss 6/4 2,825,673 12,990,817
Held to maturity investments – Treasury bills 6/5 914,223,521 425,580,885
Bank current account’s and deposits of
compounds facility management 22 791,333,734 475,238,715
Cash and bank balances 12 845,796,188 947,793,507
Total Current Assets 12,630,635,527 9,432,003,321
Total Assets 20,043,205,614 16,062,977,458
EQUITY AND LIABILITIES

Equity
Issued and paid up capital 18 1,440,000,000 1,440,000,000
Legal reserve 270,705,792 223,961,329
Retained earnings 1,757,593,655 1,599,997,287
Net profit for the year 1,001,238,048 980,895,727
Treasury shares (20,767,480) -
Issued capital and reserves attributable to owners
of the parent 4,448,770,015 4,244,854,343
Non-controlling interest 19 92,891,011 110,313,613
Total Equity 4,541,661,026 4,355,167,956
CFO and Head of investors

relationships Managing Director Chairman
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
The attached notes from 1 to 41 form part of these summary consolidated financial statements.
2

CONSOLIDATED STATEMENT OF FINANCIAL POSITION - Continued
At 31 December 2020
31/12/2020 31/12/2019
Note L.E. L.E.
Non-Current Liabilities
Unearned revenues 13 9,300,793,937 8,150,028,622
Long term notes payable 17/1 319,699,511 12,127,976
Term loans 20 1,969,138,499 687,300,873
Total Non-Current Liabilities 11,589,631,947 8,849,457,471
Current Liabilities
Creditors – Advance payments 52,808,467 91,219,987
Provisions 14 75,901,923 109,615,968
Trade payables 659,006,515 540,290,899
Infrastructure completion liabilities 15 161,784,518 117,595,536
Dividends payable 27,306,040 20,279,270
Creditors and other credit balances 17/2 437,488,877 485,101,826
Current portion of long term loans 20 220,232,550 28,451,936
Short term loans 21/1 872,222,332 464,595,367
Liabilities of compounds facility management 22 772,737,521 476,461,480
Credit banks (credit facilities) 21/2 356,377,080 216,717,683
Tax Authority 276,046,818 308,022,079
Total current liabilities 3,911,912,641 2,858,352,031
Total Liabilities 15,501,544,588 11,707,809,502
Total EQUITY AND LIABILITIES 20,043,205,614 16,062,977,458
Auditor’s report attached.
CFO and Head of investors

relationships Managing Director Chairman
3

CONSOLIDATED STATEMENT OF INCOME
For the year ended 31 December 2020
31/12/2020 31/12/2019
Note L.E. L.E.
Net revenues 24-a 3,096,906,551 2,200,628,226

Less:
Cost of revenues 24-b (1,383,242,372) (630,531,725)
Gross Profit 1,713,664,179 1,570,096,501
Less:
Selling and marketing expenses 26 (260,475,033) (224,539,428)
General and administrative expenses 27 (149,554,482) (132,202,124)
Other operating expenses 28 (26,257,992) (16,128,716)
Loss on sale of Al Nasr Company for Utilities
and Erections (17,693,512) -
Impairment of receivables (8,768,803) (982,000)
Decrease in inventory (6,391,395) -
Impairment of trade payables - debit balances (20,655) -
Provisions 14 (29,442,899) (2,250,000)
Provisions no longer required - 4,250,000
Finance expenses (128,292,230) (85,381,071)
Add:
Finance income 29 109,048,319 99,430,237
Other operating income 30 32,919,767 90,709,897
Operating profit 1,228,735,264 1,303,003,296
Return on investments held to maturity and
available for sale 1,707,926 672,320
Gain on sale of investments in Al Nasr
Company for Utilities and Erections 16,772,087 -
Other expenses 31 (12,602,996) (8,585,698)
Net profit for the year before tax 1,234,612,281 1,295,089,918
Income tax (260,746,274) (292,049,535)
Deferred tax 34 14,527,532 (2,044,769)
Net profit for the year 988,393,539 1,000,995,614
Add/(Less): Non-controlling interest 12,844,509 (20,099,887)
Attributable to owners of the parent 32 1,001,238,048 980,895,727
Earnings per share for the year 36 0.617 0.608
CFO & Head of Investors

Relationships Managing Director Chairman
4

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
31/12/2020 31/12/2019
L.E. L.E.
Net profit for the year 988,393,539 1,000,995,614

Other comprehensive income - -
Total comprehensive income for the year 988,393,539 1,000,995,614
Non-controlling interest 12,844,509 (20,099,887)
Attributable to owners of the parent 1,001,238,048 980,895,727

5

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Issued and Total Non-

paid up Legal Retained Net profit for Treasury owners of the controlling Total
Capital reserve earnings the year shares parent interest Equity
L.E. L.E. L.E. L.E. L.E. L.E. L.E. L.E.
Balance at 1 January 2019 1,200,000,000 170,478,648 918,233,758 1,084,591,561 - 3,373,303,967 96,136,160 3,469,440,127
Transferred to retained earnings - - 1,084,591,561 (1,084,591,561) - - -
Dividends for 2018 - - (104,730,000) - - (104,730,000) - (104,730,000)
Transferred to legal reserve - 53,482,681 (53,482,681) - - - - -
Increase in capital according to Extraordinary
General Assembly Meeting held on 25
March 2019 240,000,000 - (240,000,000) - - - - -
Dividends for Al Nasr Company for Civil
Works - - (4,615,351) - - (4,615,351) (5,922,433) (10,537,784)
Total comprehensive income - - - 980,895,727 - 980,895,727 20,099,886 1,000,995,613
Balance at 31 December 2019 1,440,000,000 223,961,329 1,599,997,287 980,895,727 - 4,244,854,343 110,313,613 4,355,167,956
Transferred to retained earnings - - 980,895,727 (980,895,727) - - - -
Dividends for 2019 (*) - - (751,295,443) - - (751,295,443) - (751,295,443)
Transferred to legal reserve - 46,744,463 (46,744,463) - - - - -
Purchase of treasury shares - - - - (20,767,480) (20,767,480) - (20,767,480)
Dividends of 2019 for Al Nasr Company for
Civil Works - - (4,079,577) - - (4,079,577) (6,306,876) (10,386,453)
Total comprehensive income before disposed
of Al Nasr Company for Utilities and
Erections - - - 1,002,159,473 - 1,002,159,473 (12,844,509) 989,314,964
Effect of disposed of Al Nasr Company for
Utilities and Erections - - (21,179,876) (921,425) - (22,101,301) 1,728,783 (20,372,518)
Balance at 31 December 2020 1,440,000,000 270,705,792 1,757,593,655 1,001,238,048 (20,767,480) 4,448,770,015 92,891,011 4,541,661,026
(*) According to AGM was held on 13 December 2020 agreed to reverse L.E. 2,07 M from dividends payable to retained earnings representing the value of
the treasury shares' share of 4.6 million shares (until the date of the dividend coupon due on April 6. 2020) dividends at a rate of 0.45 EGP/ share.

6

CONSOLIDATED STATEMENT OF CASH FLOWS
31/12/2020 31/12/2019
Note L.E. L.E.
OPERATING ACTIVITIES
Net profit for the year before tax 1,234,612,281 1,295,089,918
Adjustments for:
Depreciation of fixed assets and investment properties 4/1 ،6/3 19,698,859 11,371,874
Amortization of intangible assets 5,248,453 5,663,978
Gain on sale of investments in subsidiaries (4,998,600) -
Accrued finance expenses 128,292,230 85,381,071
Bad debts - 227,916
Provisions 14 29,442,899 2,250,000
Return on investment properties - (24,923,282)
Provisions no longer required - (4,250,000)
Decrease in inventory - 982,000
Impairment of trade payables - debit balances 8,768,803 -
Impairment of trade receivables 6,391,395 -
Impairment of other debit balances 20,655 -
Return on investments held to maturity and available for sale (1,707,926) (672,320)
(Gain) on sale of fixed assets 30 - (695,770)
Net recognized installment - profit and interest 16 (17,781,956) (36,688,749)
Loss on foreign exchange 31 139,469 314,360
Return on treasury bills 29 - (5,206,203)
1,408,126,562 1,328,844,793
Inventories, unfinished and finished properties (2,445,786,708) (1,423,021,187)

Trade receivables, debtors, debit balances and notes receivable (850,014,721) (1,391,821,191)
Trade payables and other credit balances 1,506,226,208 1,921,426,934
Used provisions 14 (36,697,136) (12,927,447)
Effect of disposed of Al Nasr Company for Utilities and
Erections (26,459,808) -
Dividends paid to Board of Directors and employees (102,418,250) (101,261,999)
Income tax paid (296,371,968) (307,380,254)
Finance expenses paid (99,301,459) (82,354,324)
Held to maturity investment – Treasury bills - 106,500,000
Net cash (used in)/from operating activities (942,697,280) 38,005,325
INVESTING ACTIVITIES:
Payments for purchase of fixed assets and fixed assets under
construction 4/1, 4/2 (13,462,322) (32,527,558)
Proceeds from sale of investments of Al Nasr Company for
Utilities and Erections 4,998,600 -
Payments for purchase of intangible assets 5 (3,431,320) (2,664,363)
Proceeds from sale of fixed assets - 699,049
Effect of disposed of fixed assets of Al Nasr Company for
Utilities and Erections 849,653 -
Effect of disposed of available for sale investments of Al Nasr
Company for Utilities and Erections 205,232 -
Proceeds from sale of investment properties - 33,500,000
Return on investments held to maturity 1,707,926 672,320
Net cash used in investing activities (9,132,231) (320,552)
7

CONSOLIDATED STATEMENT OF CASH FLOWS - Continued
31/12/2020 31/12/2019
Note L.E. L.E.
FINANCING ACTIVITIES:
Dividends paid to shareholders (645,930,000) -
Treasury shares (20,767,480) -
Non-controlling interest (6,306,876) (5,922,433)
Effect of disposed of Al Nasr Company for Utilities and
Erections on retained earnings and Non-controlling
interest (19,451,093) -
Payments of long term loans 20 (62,234,206) (137,700,945)
Proceeds from long term loans 20 1,535,852,446 476,905,560
Payments of short term loans 21 (1,266,217,286) (345,000,246)
Proceeds from short term loans 21 1,673,844,251 697,928,949
Net cash from financing activities 1,188,789,756 686,210,885
Change in cash and cash equivalents 236,960,245 723,895,658

Cash and cash equivalents at the beginning of the year 1,169,647,526 446,066,228
Loss of foreign exchange differences (139,469) (314,360)
Total cash and cash equivalents at the end
of the year 1,406,468,302 1,169,647,526
Less: Pledged time deposits against letters of guarantee (96,734,205) (95,369,760)
Pledged investment certificates against letters of
guarantee (1,035,000) (10,468,303)
Cash and cash equivalents at the end of the year 21 1,308,699,097 1,063,809,463
NON-CASH TRANSACTIONS:
The statement of cash flows does not include the following non-cash transactions:
- Disposal of fixed assets under constructions amounted to L.E. 15,821,545 and investment
properties amounted to L.E. 176,318 against land and unfinished properties -WIP amounted to
L.E. 15,997,863.
- An amount of L.E. 1,365,389 (2019: L.E. 1,012,063) presented in the transfer from
fixed assets under construction to fixed assets during the year.

8

NOTES TO THE SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTS
31 December 2020
1. COMPANY BACKGROUND
1.1 Legal form of the company
Madinet Nasr for Housing and Development S.A.E. was incorporated in accordance
with the Presidential Decree No. 815/1959 and was changed to Joint Stock Company
according to Presidential Decree No 2908/1964, then became a subsidiary of Public
Sector Authority for Housing by Presidential Decree No. 469/1983.
The company was converted under the provisions of Law No. 203 for 1991 issued on
30/06/1996 to an Egyptian Joint Stock Company as a subsidiary to the Holding
Company for Housing under the name of Madinet Nasr Housing and Development.
The Extraordinary General Assembly of the company held on 30/06/1996 approved
the change in the governing laws under which the company was operating from the
provisions of Law No. 203 for 1991 to the provisions of Law No. 159 for 1981 and its
executive regulations and published in company's journal on January 1997.
The Company was registered in the Commercial Registry under No. (300874) dated
23 December 1996 and Tax Registration No. 095-009-200.
1.2 Activity
The company is engaged in all activities related to real estate development for land,
buildings and facilities including acquisition of land and real estate, sale and rental,
dividing it and providing all types of facilities necessary for reconstruction and
connected to it in Nasr City and other areas nationwide, the purchase and
development, utilization, leasing and sale of all buildings and land. The company can
establish, manage and invest in all residential, administrative, tourist, recreational and
all projects necessary to achieve these purposes, and all real estate operations,
financial, commercial and entertainment related to these purposes, as well as carrying
out design, and engineering consultancy, and supervision of the execution by others.
BIG Investment Group Limited – Britain – is considered the main shareholder of the
company.
1.3 Duration
The company's term is 50 years starting from the date of the registration in the
commercial register and has been renewed for another 25 years started from
23/12/1996 to 22/12/2046.
1.4 Location
The company’s Head Office is located at 4, Youssef Abbass, Nasr City, Cairo, Egypt.
The Chairman is Eng. Mohamed Hazem Barakat.
The company’s ordinary shares are listed on the Egyptian Exchange (EGX) and, as
Global Depositary Receipts (GDRs).
The company's Board of Directors has approved the consolidated financial statements
for the year ended 31 December 2020 on 25 February 2021.
9

31 December 2020
1. COMPANY BACKGROUND - Continued
1.5 Basis of consolidation
A subsidiary is a company in which the company owns more than 50% of the share
capital and the company exercises the right to control the investee when the company
is exposed or entitled to variable returns through the company's contribution to the
investee company and has the ability to affect those returns through its authority over
the company. Therefore the company controls the investee company when the
company has all the following:
 Power over the investee.

 Exposure or right to variable returns by contributing to the investee company.
 The ability to use the authority on the investee company to influence the
amount of proceeds obtained from it.
Investments in subsidiaries are carried at cost less impairment losses, if any.
 The consolidated financial statements include the financial statements of the

company and its subsidiaries.
 The financial statements of the subsidiaries are prepared for the same reporting
year as the parent company, using consistent accounting policies.
 All intra-group balances, transactions, income and expenses and profits and losses
resulting from intra-group transactions that are recognized as assets and liabilities,
are eliminated in full.
 Subsidiaries are fully consolidated from date of acquisition, being the date on
which the group obtains control, and continue to be consolidated until the date
such control ceases.
 Non-controlling interests represent the portion of total comprehensive income and
net assets not held by the group are presented separately in statement of income
and within equity in consolidated financial position, separate from owners of
parent’s equity.
The following is a listing of subsidiaries:
Percentage
Subsidiary
Ownership Activity
Al Nasr for Civil Works S.A.E. 52.46% Civil construction
On 23 August 2020, the company's Board of Directors approved the offer submitted
by a strategic investor to acquire Al Nasr for Utilities and Erection S.A.E. at value of
L.E. 30 million, which include the purchase of Madinet Nasr for Housing and
Development shares in capital of Al Nasr for Utilities and Erection S.A.E. (12,296,500
shares) at a ratio of 98.37% and the purchase of a credit balance owned by Madinet
Nasr for Housing and Development amounted to L.E. 63.3 million, and the contract
was signed on 17 November 2020 which approved by Ordinary General Assembly
Meeting held on 13 December 2020.
10

31 December 2020
2. USE OF ESTIMATES AND JUDGMENTS
The preparation of consolidated financial statements in accordance with Egyptian Accounting

Standards requires management to make judgments, estimates and assumptions that affect the
application of policies and reported amounts of assets, liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable, under the circumstances, the results of which form
the basis of making the judgments about the carrying values of assets and liabilities. Actual
results may differ from those estimates.
The estimates and underlying assumptions are reviewed on a continuous basis. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and the
future periods if it affects future periods.
The following are items on the consolidated financial statements that are effected by
judgments, assumptions, and estimates:
- Estimated useful lives of fixed assets, investment property and intangible assets
- Provisions and contingent liabilities
- Impairment of financial and non-financial assets
- Taxation
- Cost of sales and cost of completion of infrastructure liability
- Amortization of the discount of present value of notes receivable
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3.1 Summary of significant accounting policies
3.1.1 Basis of preparation of consolidated financial statements
The consolidated financial statements were prepared in accordance with the Egyptian
Accounting Standards and relevant local laws and regulations.
The consolidated financial statements are prepared under the historical cost
convention modified for measurement of available for sale investments, held to
maturity investments and investment at fair value through profit and loss.
The consolidated financial statements are presented in Egyptian Pounds which

presents the functional currency of the group.
The consolidated financial statements are prepared by complying the same accounting
policies for the current year, except the implementation of the new Egyptian
Accounting Standard no. (34)- Investment Property- issued during 2019 which is
applied starting from or after the financial period January 2019 concerned with
applying the cost model with fair value disclosure-investment property, but the
company couldn’t measure its fair value reliably.
11

31 December 2020
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
3.1.2 Fixed assets and depreciation
Recognition an measurement
Fixed assets are recorded on purchase at cost and are presented in the consolidated
financial position net of accumulated depreciation and impairment losses (Note 4).
Historical costs include costs associated with the purchase of the asset. For assets
constructed internally, the cost of the asset includes the cost of raw materials, direct
labor and other direct costs incurred in bringing each asset to its location and the
purpose for which it was acquired, as well as the costs of removal and rearrangement
of the site, where the assets are located.
Components are accounted for on an item of fixed assets that have different useful
lives as separate items within those fixed assets.
Subsequent costs
The carrying amount of fixed assets includes the cost of replacing a part or component
of such assets when it is expected to obtain future economic benefits as a result of
spending that cost. Other costs allocated to the consolidated statement of income as an
expense when incurred.
Depreciation
Depreciation is provided on a straight line basis to write off the cost less estimated
residual value of each asset – other than land. Estimated useful lives are reviewed
periodically and on review base useful lives are adjusted and relevant rates for year
2019 as follows:
MNHD NCCE NCUE

Useful life Useful life Useful life
Years Years Years
Buildings 40 10-40 20-50

5 or the duration of
Improvements- Leasehold building the lease whichever - -
is lower
Improvements- Building owned 8 - -
Machinery & equipment for
- 2-10 2-10
production
Machinery & equipment 5 - -
Motor vehicles 5 5-10 4-6
Computers and servers 5-8 - -
Tools & equipment 2 4-10 4-12
Furniture & office equipment 2-8 10 10-15
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31 December 2020
Fixed assets under construction
Fixed assets under construction are recorded at cost which includes all the direct costs
incurred on the assets to reach its final position. These are transferred to fixed assets or
investment property when the asset is complete and ready for its intended use. Fixed
assets under construction are recorded at cost less impairment, if any.
3.1.3 Intangible assets
Recognition
Assets of a non-monetary nature that are identifiable and have no physical existence
and that is held for purposes of use and from which future benefits are expected to
flow are treated as intangible assets.
The first measurement
Intangible assets are measured at cost, which is represented in the monetary price on
the date of evidence, and in the event that payment is postponed for periods exceeding
the followed credit periods, the difference between the cash price and the total amount
paid is recognized as interest. Intangible assets are shown net, net of depreciation and
impairment.
Subsequent expenditures
Subsequent expenditures on the acquisition of intangible assets are capitalized only

when these expenditures increase the future economic benefits of the related asset, and
all other expenditures are charged to the income statement (profits or losses) when
incurred.
Amortization
Amortization is charged to the income statement (profits or losses) according to the

straight-line method over the life of the useful life of the intangible assets, and this is
the amortization of intangible assets from the date in which they are available for use,
but if the useful life of the intangible assets is not specified then it is done. Carrying
out impairment testing on a regular basis at the date of each financial position for
these assets.
Useful life
(Years)
Software 3
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31 December 2020
3.1.4 Available for sales investment
Available for sale investments are initially recorded at cost and are subsequently
measured at fair value. Changes in fair value are reported as a separate component of
other comprehensive income. Where available for sale investments could not be
measured reliably, as the market for an investment is not active (and for unlisted
securities), these are stated at cost less impairment losses, if any. Impairment loss is
charged to the consolidated statement of income.
3.1.5 Held to maturity investments
Held to maturity investments are carried at amortized cost using the effective interest
method. Premiums or discounts (if any) are amortized using the effective interest
method. When the investment is impaired, the impairment loss is adjusted against
book value and included in the consolidated statement of income.
3.1.6 Investment properties
Investment properties are measured at cost model and depreciation expense carried to
the consolidated statement of income according to the straight-line method over the
estimated useful life of all investment property except the land. In case of such assets
are impaired, the loss is included in the consolidated income statement.
Assets Useful life
Residential 40 years
Nan-residential units 40 years
3.1.7 Investments at fair value through profit or loss
Investments at fair value through profit or loss are initially recorded at cost and
revaluated at the date of consolidated financial statements at fair value which
represents the market price at the valuation date. Changes in fair value are charged to
the consolidated statement of income.
3.1.8 Inventories
Inventories are stated at the lower of cost or net realizable value. Costs include
expenses incurred in bringing each product to its present location and condition. Cost
of raw materials, packing materials, spare parts, fuel and oil is determined on an
weighted average basis.
Net realizable value is based on estimated selling price less selling and completion
cost.
3.1.9 Lands, unfinished and finished properties

All cost incurred on lands, unfinished and finished properties are included in this
account. At point of sale, this account is adjusted based on actual per meter cost of
land or units sold. Lands, unfinished and finished properties are measured at the lower
of cost and net realizable value. In case of decrease the net realizable value under the
cost, the decrease is charged to the consolidated statement of income.
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31 December 2020
3.1.10 Consolidated statement of cash flows
Consolidated statement of cash flows is prepared according to the indirect method.
3.1.11 Cash and cash equivalents
Cash and cash equivalents include cash on hand, time deposits and treasury bills (due
within 3 months), investments at fair value through profit and loss, bank current
accounts, and short term highly liquid investments, which can be easily converted to
cash, less overdrafts (credit banks) and pledged time deposits against letters of
guarantee.
3.1.12 Trade receivables, notes receivables and other debit balances
Trade accounts receivable stated at cost net of allowance for doubtful debts, which is
estimated for amounts not expected to be collected in full. Other debtors stated at cost
less any impairment.
Notes receivable represents are the value of the Post Dated Checks (PDCs) obtained
from the customers in payment of the remaining contractual values of the contracted
real estate units. The initial recognition of the notes receivable is at fair value at the
time the contract is entered into with the customers. At the date of preparation of the
consolidated financial statements, notes receivable are re-measured at amortized cost
which is determined by discounting the future cash flows of the notes receivable using
the rate of return that discounts the nominal value of the instruments to the current
cash price for selling the real estate units.
3.1.13 Assets impairment
Non-Financial Assets
At the consolidated financial statements date, the company reviews the carrying
amounts of its owned non financial assets to determine whether there is any indication
that those assets may be impaired. If any such indication exists, the company estimates
the recoverable amount for each asset separately in order to estimate the impairment
losses. In case the recoverable amount of the asset cannot be properly estimated, the
company estimates the recoverable amounts for the cash-generating unit which is
related to the asset.
In case of using a reasonable and consistent basis for allocating of the assets to the
cash generating units, the company's general assets would be also allocated to these
units. If this is unattainable, the general assets of the company shall be allocated to the
smallest group of the cash-generating units, which the company determined using
logical and fixed bases.
The asset recoverable amount or the cash-generating unit is represented by the higher
of the fair value (less the estimated selling costs) or the estimated amount from the
usage of the asset (or the cash generating unit).
15

31 December 2020
The estimated future cash flow from the usage of the assets, or the cash generating
unit using a discount rate before tax is discounted in order to reach the present value
for these flows which represents the estimated amount from using the asset (or the
cash generating unit).
This rate reflects current market assessments of the time value of money and the risks
specific to the asset, which were not taken into consideration when estimating the
future cash flow generated from it. When the recoverable amount of the asset (cash
generating unit) is estimated to be less than its carrying amount, the carrying amount
of the asset (cash generating unit) is reduced to its recoverable amount with the
impairment loss recognized immediately in the consolidated income statement.
In case the impairment on asset (or cash generating unit) decreases subsequently, and
this decrease is related in a logical manner to one event or more taking place after the
initial recognition of the impairment at the profit or losses, a reversal is done for the
revised amount of losses (or a part of it) - which had been previously recognized - in
the consolidated income statement, and the carrying amount for the asset is increased
(or the cash generating unit) with the new estimated recoverable amount provided that
the revised carrying amount of the asset after revising (or the cash generating unit)
does not exceed the carrying amount determined for the asset, had the recognized
losses resulting from impairment, not been recognized in previous years
Financial Assets
At the consolidated financial statements date, the company determines whether there
is any indication that its financial assets may be impaired.
Financial assets are exposed to impairment when an objective evidence that the
estimated future cash flow have been affected by the event or more established at a
date subsequent to the initial recognition of the financial asset.
The carrying value of all financial assets is reduced directly with the impairment
losses except those related to the reduction in the expected value of the collections
from the customers debts and other debit balances, where a formed allowances for
impairment loss is done on its value. When the debt of the clients or the owner of the
debit balance is uncollectible, a written off discount is applied upon this account. All
the changes in the book value relating to this account are recognized in the
consolidated income statement.
3.1.14 Provisions
Provisions are recognized when there is a present obligation (legal or constructive) as

a result of a past event, it is probable an outflow of resources embodying economic
benefits will be required to settle this obligation and a reliable estimate can be made
for the obligation.
Provisions are reviewed at the consolidated statement of financial position date and
adjusted (if necessary) to present the best current estimate.
16

31 December 2020
3.1.15 Unearned revenue, payables and other credit balances
The value of unearned revenues on real estate units (villas, townhouses, twin houses,
apartments and garages) contracted for sale and were not delivered to customers on the
date of the consolidated statement of financial position is recorded as a liability at the
cash price of those units (after discounting the future contractual value of these units
to reach the cash sale price). These balances are recognized as sales income in the
consolidated statement of income on the date of delivery.
Liabilities are recognized for amounts to be paid in the future for goods received or
services rendered to the company, whether billed or not billed by the supplier.
3.1.16 Treasury stocks
Treasury stocks are recorded at cost and deducted from shareholders equity. Gain or
loss from sale of shares is included in the retained earnings.
3.1.17 Dividends
Dividends are recorded as liability during the year when declared.
3.1.18 Revenue recognition
1. Cash sales
Sales of land and property is recoded after collection of the agreed upon price
and delivery to the customer in accordance with the terms of the contract.
2. Installment Sales
- Total sale of value of land and property is recorded as sales during the
period after deduction of profit relating to deferred installments on those
sales. Such deduction is recorded as a liability (profit from deferred
installments) when the following terms for sales are met as:
 The risk and rewards of ownership of units sold is not transferred to the
buyer until settlement of all installments due from the buyers and the
transfer of ownership to buyer.
 The company has the right of managerial intervention and supervision

on units sold to guarantee that the buyer is a biding by the contractual
terms.
 According to the signed contracts with the customers, the company has
the right to cancel the contracts if all installments due were not paid.
- Deferred installments profit and deferred interests on installments which

related to sale of land and properties in prior years are recognized on the
accrual basis when the installments full due adjusting the profit margin by
cost incurred on projects during the year.
17

31 December 2020
3. Revenue from real estate contracts
The company is performing the activity of real estate and marketing to this
activity through customers’ contracts which give them the right to have real
estate villa, ton house and unit over the period of the contract. Revenue
recognized from sales agreements according to the stages included in the sales
agreements according to the following:
 Development of land for construction of real estate

 Construction of the building and finishing of units
4. Joint arrangement
A joint arrangement is an arrangement in which two or more parties have joint

control. It is either a joint operation or a joint venture. A joint arrangement is
that the parties are bound by a contractual agreement granting joint control to
two or more parties of the arrangement.
The classification of a joint arrangement as a joint operation or a joint venture

depends on the rights and obligations (undertakings) of the parties to the
arrangement. The joint operation becomes a joint arrangement when its parties
have joint control over the rights over the assets and the obligations associated
with the arrangement. These parties are called joint operators. A joint venture
is a joint arrangement when its parties have joint control over the rights over
the net assets associated with the arrangement. These parties are called
shareholders in joint ventures. The entity shall apply the judgment in assessing
whether the joint arrangement is a joint venture or a joint venture.
The joint operator shall account for assets, liabilities, income and expenses
related to its share in the joint operation in accordance with the Egyptian
Accounting Standards applicable to such assets, liabilities, revenues and
expenses.
On 31 December 2015, the Company adopted a new strategy to execute a joint

venture development contract based on a share in the revenue of the sales. The
Company receives its share against the land provided for development by the
other co-developer who will receive the rest of the sale revenue against
incurring the development cost.
5. Other revenue:
- Rent, time deposits interest and bonds revenue recorded on the accrual
basis.
- Dividends revenue are recognized and recorded as income when they
become legally payable by the investee companies and realized after
acquisition date.
18

31 December 2020
6. Contracting Revenue
Contacting revenue of the two subsidiary companies included value of

contracts with customers, approved change orders, incentives, and other
claims. Revenue from contracting is recognized following percentage-of-
completion method.
3.1.19 Direct and indirect cost
Direct and indirect costs incurred for the constructions of the real estate are
accumulated in the lands, unfinished and finished properties inventory account. Cost
of the completed units are comprises of land cost, cost of building constructed and
other indirect costs.
3.1.20 Other operating expenses
An expense represents the cost of temporary operating activity for residential

compounds until delivering the units to the customers.
3.1.21 Operating rent
Operating rent are recorded in the consolidated statement of income on a straight line
method over the rent period.
3.1.22 Employees' benefits
The company contributes to the social insurance scheme for the benefit of its
employees in accordance with the Social Insurance Law. Contributions of workers and
employers are calculated at a fixed rate of wages. The company's commitment is
represented in value of its contribution. The company's contributions are charged to
the statement of income. The company gives employees who have reached retirement
age, end of service gratuity up to a maximum of 50 thousand Egyptian pounds. The
Company also applies an optional early retirement scheme. End of service benefits for
employees benefiting from this system are charged to the consolidated statement of
income in the period in which they are approved for early retirement.
3.1.23 Taxation
Income tax
Taxation is accounted according to Egyptian laws and regulations.
Income tax expense that is calculated on the profits of the company represents the sum
of the tax currently payable (calculated according to the applied laws and regulations
and using the tax rates prevailing as of the consolidated financial statements date) and
deferred tax. Current and deferred taxes are recognized as income or expenses and
included in the profits or losses of the period except for instances that taxes are
established from:
19

31 December 2020
 A transaction or event recognized, in the same period or other period, outside

profit or loss either in other comprehensive income or directly in equity, or
 Business combinations.
Deferred tax is recognized on temporary differences between the carrying amounts of

assets and liabilities according to the accounting basis used in the consolidated
financial statements and the corresponding tax bases used in the computation of
taxable profit. Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the period in which the liability is settled or the asset realized,
based on tax rates that have been enacted or substantively enacted at the consolidated
financial statements date.
Deferred tax liabilities are generally recognized (generated from taxable temporary
differences in the future) while deferred tax assets recognized for all deductible
temporary differences to the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can be utilized.
The carrying amount of deferred tax assets is reduced to the extent that it is no longer
probable that sufficient taxable profits will be available in future years to allow all or
part of the asset to be recovered. The balance sheet method is used in accounting for
deferred assets and liabilities and they are recognized as non-current assets and
liabilities.
3.1.24 Earnings per share
Earnings per share are calculated by dividing the net profit for the period after deduct
employees share in profit and Board of Directors remuneration by the weighted
average number of outstanding shares during the year.
3.1.25 Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of a

qualified asset for capitalization of cost of borrowing; are capitalized as part of the
cost of the asset. Other borrowing costs are charged as an expense in the consolidated
statement of income on a time-apportioned basis using the effective interest rate.
3.1.26 Legal reserve
As required, by the Companies Law No. 159 of 1981 and the company’s Articles of
Association 5% of the profit for the year is transferred to the legal reserve. The
company may resolve to discontinue such annual transfers when the reserve totals
50% of the issued share capital. The legal reserve cannot be distributed except in cases
stated in the Law.
20

31 December 2020
3.1.27 Foreign currency transactions
The company’s functional currency is the Egyptian pound. Transactions in foreign

currencies are recorded at the rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the consolidated financial
statements date are translated at the rate of exchange ruling at that date. Retranslation
exchange profit and loss is taken to the consolidated statement of income.
3.1.28 Health insurance contribution
The comprehensive health insurance system mandated by Law No. 2 for 2018 has been
adopted on 12 July 2018 and is applied on all entities whether individual or corporate
regardless of their nature in legal form.
3.2 New amendments on the Egyptian Accounting Standards
On 18 March 2019, the Minister of Investment and International Cooperation introduced

amendments to some provisions of the Egyptian Accounting Standards issued thereby by
virtue of Decree No. 110 of 2015, which include some new accounting standards as well as
introducing amendments to certain existing standards which was published at the official
Gazette on 25/4/2019.
On April 12, 2020, The Financial Regulatory Authority (FRA) has decided to postpone the
application of amendments to the new Egyptian accounting standards to interim consolidated
financial statements and limit them to the annual financial statements by the end of 2020, due
to the current situations that the country is going through as a result of the outbreak of the
Corona virus (COVID-19).
On September 17, 2020 according to Prime Minister decree No. 1871 of 2020 the application
of amendments of the new Egyptian Accounting Standards was postponed and to be applied
on interim and annual consolidated financial statements starting from January 2021.
21

31 December 2020
4/1 FIXED ASSETS

Buildings Furniture &
Machinery & Motor Computers
Land and Leasehold Tools office
equipment vehicles & software Total
constructions improvement equipment
(*) (*)
L.E. L.E. L.E. L.E. L.E. L.E. L.E. L.E. L.E.
Cost:
At 1 January 2020 1,660,315 22,809,018 30,311,057 37,283,295 19,828,761 3,828,295 19,293,669 11,887,669 146,902,079
Additions during the year - - 9,134,316 668,582 54,719 650 851,984 2,752,071 13,462,322
Transfer to fixed assets under
process - 529,587 835,802 - - - - - 1,365,389
Disposals during the year - - - - (173,350) (5,720) (365,468) - (544,538)
Disposals of assets of Al Nasr
for Utilities and Erection (871) (357,165) - (2,202,051) (3,382,368) (2,412,011) (2,491,222) - (10,845,688)
At 31 December 2020 1,659,444 22,981,440 40,281,175 35,749,826 16,327,762 1,411,214 17,288,963 14,639,740 150,339,564
Accumulated depreciation:
At 1 January 2020 - 7,075,882 4,286,183 31,529,275 16,954,504 3,440,766 13,184,533 4,666,198 81,137,341
Provided during the year 1,077,971 11,544,224 2,000,560 745,940 70,173 2,144,784 2,055,555 19,639,207
Disposals during the year - - - - (173,350) (5,720) (365,468) - (544,538)
Disposals of assets of Al Nasr
for Utilities and Erection - (239,994) - (2,201,545) (3,020,368) (2,387,311) (2,146,817) - (9,996,035)
At 31 December 2020 - 7,913,859 15,830,407 31,328,290 14,506,726 1,117,908 12,817,032 6,721,753 90,235,975
Net book value:

At 31 December 2020 1,659,444 15,067,581 24,450,768 4,421,536 1,821,036 293,306 4,471,931 7,917,987 60,103,589
(*) Land and buildings includes land and buildings of the social club and the playground rented for Madinet Nasr for Housing and Development
club by book value approximately L.E. 1.3 million and L.E. 4.5 million for land and buildings respectively, also the buildings and
constructions of El Nasr for Utilities on a plot of land of 7,780 M2 by a usufruct right for the company with unlimited period and there are
negotiation to purchase this land.
4/1 FIXED ASSETS - Continued
22

31 December 2020
Buildings Furniture &

Machinery Motor Computers
Land and Leasehold Tools office
& equipment vehicles & software Total
constructions improvement equipment
(*) (*)
L.E. L.E. L.E. L.E. L.E. L.E. L.E. L.E. L.E.
Cost:
At 1 January 2019 1,660,315 21,712,113 6,553,485 37,216,903 17,781,535 3,905,784 17,387,432 9,100,586 115,318,153
Additions during the year - 520,101 23,757,572 16,800 2,377,600 83,627 2,059,376 2,995,712 31,810,788
Transfer to fixed assets under
process - 576,804 - 435,259 - - - - 1,012,063
Disposals during the year - - - (385,667) (330,374) (161,116) (153,139) (208,629) (1,238,925)
At 31 December 2019 1,660,315 22,809,018 30,311,057 37,283,295 19,828,761 3,828,295 19,293,669 11,887,669 146,902,079
At 1 January 2019 - 6,078,086 1,310,697 29,138,897 16,685,952 3,525,878 11,128,254 3,193,001 71,060,765
Provided during the year - 997,796 2,975,486 2,776,045 598,926 76,004 2,206,139 1,681,826 11,312,222
Disposals during the year - - - (385,667) (330,374) (161,116) (149,860) (208,629) (1,235,646)
At 31 December 2019 - 7,075,882 4,286,183 31,529,275 16,954,504 3,440,766 13,184,533 4,666,198 81,137,341
Net book value:

At 31 December 2019 1,660,315 15,733,136 26,024,874 5,754,020 2,874,257 387,529 6,109,136 7,221,471 65,764,738
23

31 December 2020
4/1 FIXED ASSETS - Continued

a) Fully depreciated assets and still operating are as follows:
31/12/2020 31/12/2019
L.E. L.E.
Buildings and constructions 942,264 825,518

Machinery and equipment 20,669,429 21,106,986
Motor vehicles 12,625,540 15,106,455
Tools 725,565 3,093,672
Furniture and office equipment 5,672,629 6,412,465
Computers 1,596,537 887,769
42,231,964 47,432,865
b) Depreciation for the year is allocated as follows:
31/12/2020 31/12/2019
L.E. L.E.
Cost of sales 1,895,364 2,577,725

Selling & marketing expenses (Note 26) 12,816,645 4,125,217
General and administrative expenses
(Note 27) 4,927,198 4,609,280
19,639,207 11,312,222
4/2 FIXED ASSETS UNDER CONSTRUCTION
31/12/2020 31/12/2019
L.E. L.E.
Madinet Nasr for Housing and Development
Balance at the beginning of the year 17,186,934 17,482,227
Additions during the year - 716,770
Disposals (*) (15,821,545) -
Transferred to fixed assets (Note 4/1) (1,365,389) (1,012,063)
Balance at the end of the year (Parent Co.) - 17,186,934
Al Nasr Company for Civil Works 639,583 639,583
639,583 17,826,517
(*) Disposals represents a plot of land in Nasr City with an equal plot of lands adjacent to
Taj City for entertainments activities, and the lands exchange contract was signed with
the Land Projects Authority of the Ministry of Defense during January 2020.
24

31 December 2020
5. INTANGIBLE ASSETS
Computer software and information technology.

31/12/2020 31/12/2019
L.E. L.E.
Cost at the beginning of the year 20,604,858 17,940,495
Additions during the year 3,431,320 2,664,363
Cost at the end of the year 24,036,178 20,604,858
Accumulated amortization at the beginning of the year 13,416,443 7,752,465
Amortization for the year 5,248,453 5,663,978
Accumulated amortization at the end of the year 18,664,896 13,416,443
Net book value 5,371,282 7,188,415
Fully amortized intangible assets and still operating are as follows:
31/12/2020 31/12/2019
L.E. L.E.
Computer software and information technology 7,305,882 3,136,598
Depreciation for the year is allocated as follows:

31/12/2020 31/12/2019
L.E. L.E.
Selling & marketing expenses (Note 26) 66,295 49,887
General and administrative expenses (Note 27) 5,182,158 5,614,091
5,248,453 5,663,978
6. INVESTMENTS
6/1 Held to maturity investments
31/12/2020 31/12/2019
L.E. L.E.
Investments in Governmental bonds (unlisted) 566,968 672,200
6/2 Available for sale investments

Contribution 31/12/2020 31/12/2019
% L.E. L.E.
Egyptian Kuwaiti Real Estate Development (*) 7,503 4,314,110 4,314,110
High Education House (S.A.E.) (*) 1,76 200,000 300,000
El Nasr Transformers & Electrical Products
Co. (El-Maco) 0.01 19,200 19,200
El Nasr Co. for Clay Brick Production (*) 0.8 200,000 200,000
4,733,310 4,833,310
(*) Available for sale investments are not traded in active market, the management
point of view that there is no material variance between the cost and the fair
value.
25

31 December 2020
6. INVESTMENTS - Continued
6/3 Investments properties
31/12/2020 31/12/2019
L.E. L.E.
Land held for investment purpose - 176,318

Held land ownership on sold properties 3,427,692 3,427,692
Rented building – Net (*) 559,233 618,885
3,986,925 4,222,895
(*) Investment property – rented building (Net)
None
Residential
2020 residential Total
units
units
L.E. L.E. L.E.
Cost:
At 1 January and 31 December 2020 545,997 2,645,758 3,191,755
At 1 January 2020 467,202 2,105,668 2,572,870
Provided during the year (Note 24-b) 9,339 50,313 59,652
At 31 December 2020 476,541 2,155,981 2,632,522
Net book value:

At 31 December 2020 69,456 489,777 559,233
None
Residential
2019 residential Total
units
units
L.E. L.E. L.E.
Cost:
At 1 January and 31 December 2019 545,997 2,645,758 3,191,755
At 1 January 2019 457,863 2,055,355 2,513,218
Provided during the year (Note 24-b) 9,339 50,313 59,652
At 31 December 2019 467,202 2,105,668 2,572,870
Net book value:

At 31 December 2019 78,795 540,090 618,885
26

31 December 2020
6. INVESTMENTS - Continued
- Fully depreciated investment properties and still used are as follows:
31/12/2020 31/12/2019
L.E. L.E.
Residential units 109,417 109,417

Non-residential units 300,737 300,737
410,154 410,154
6/4 Investments at fair value through profit or loss
31/12/2020 31/12/2019
L.E. L.E.
Investment certificates in:
Bank Misr Investment Fund (Day-By-Day) 346,721 313,342
QNB Investment Fund 1,375,675 1,241,140
Banque Du Caire Investment Fund 68,277 66,093
United Bank Investment Fund (Rakhaa) (*) 1,035,000 11,370,242
2,825,673 12,990,817
(*) United Bank Investment Fund (Rakhaa) includes pledged investment certificates by
L.E. 1,035,000 (2019: L.E. 10,468,303) against letters of guarantee as of consolidated
financial statement date. (Note 21)
6/5 Held to maturities investments – Treasury Bills
31/12/2020 31/12/2019
L.E. L.E.
Treasury Bills - 90 days 222,225,000 160,875,000

Treasury Bills - 83 days - 273,675,000
Treasury Bills – 70 days 391,550,000 -
Treasury Bills – 69 days 320,000,000 -
933,775,000 434,550,000
Less:
Unrealized gain on treasury bills (19,551,479) (8,969,115)
914,223,521 425,580,885
The treasury bills due within three months from the date of acquisition were classified in cash
and cash equivalents.
27

31 December 2020
7. INVENTORIES
31/12/2020 31/12/2019
L.E. L.E.
Materials and supplies 49,972,079 53,369,745

Fuel and oil 72,481 451,319
Spare parts and supplies 4,483,508 4,230,641
54,528,068 58,051,705
Less: Decrease in inventory - (400,000)
54,528,068 57,651,705
8. LANDS, UNFINISHED AND FINISHED PROPERTIES
31/12/2020 31/12/2019
L.E. L.E.
Lands and unfinished properties:
El Waha 12,444,514 17,005,598
6th October (Nasr Gardens) - 215,874,959
Tag City (*) 2,232,925,133 1,771,931,300
Nasr City 8,972,704 8,762,791
Sarai City 2,565,246,115 861,327,926
Shared land with Armed Forces (Note 6/3) 1,002,234 -
West Assuit 371,167,283 33,375
5,191,757,983 2,874,935,949
Finished properties:
El Waha and Premira 7,270,932 6,852,894
Nasr City 11,765,463 11,587,224
6th October (Nasr Gardens) 208,008,209 60,518,312
227,044,604 78,958,430
5,418,802,587 2,953,894,379
(*) The main development "Taj City" includes the stages that have been launched for sale:
"Taj Sultan", "Zone T", "Zone B", "Zone A - CBD". In addition to the stages not yet
put up for sale, the balance on 30 September 2020 represents the cost of the work of
external and internal facilities and construction
Lands, unfinished and finished properties have been recorded at cost which is not less
than net realizable value as of the separate financial statements date.
(**) In accordance with New Urban Communities Authority Board of Directors decree no.
(134) dated 22 January 2020 to specialize plot of land with area 104.15 Feddans, and
Decree No (138) dated 14 May 2020 with total amount of L.E. 497,309,325, 15% has
been paid and 85% will be on installments after a grace period for 2 years will start
during April 2022, included declared CBE rate +2% (against notes payable
“discounted" - Note 17/1).
28

31 December 2020
9. TRADE AND NOTES RECEIVABLE

31/12/2020 31/12/2019
L.E. L.E.
Long term notes receivable

Tag Sultan 422,309,192 271,024,110
Tag City (Zone T) 1,156,970,460 1,735,682,781
Tag City (Zone B) 2,260,467,327 1,357,538,860
Tag City (Zone A) 234,274,819 276,157,125
Tag City (Zone F) 21,518,882 -
Tag City (Zone G) (*) 761,108,401 -
Premira 15,341,091 17,198,126
Capital Gardens (**) 182,749,476 293,197,421
Sarai (1) 739,352,579 853,679,109
Sarai (2) 2,157,827,857 2,109,403,796
Sarai (3) 766,154,782 714,719,807
Sarai (Zone H) 44,069,823 21,924,367
Sarai (S&R) 85,655,136 -
El Waha and Nasr city 32,071,490 38,664,001
El Waha and Nasr City lands - 15,554,840
Total long term notes receivables 8,879,871,315 7,704,744,343
Less: Present value discount of Notes receivable
Tag Sultan (49,644,506) (36,578,408)

Tag City (Zone T) (140,387,351) (258,468,371)
Tag City (Zone B) (500,309,446) (183,084,061)
Tag City (Zone A) (33,926,663) (52,302,100)
Tag City (Zone F) (3,526,575) -
Tag City (Zone G) (*) (304,908,401) -
Premira (2,569,483) (3,660,146)
Capital Gardens (**) (59,666,311) (109,472,493)
Sarai (1) (84,586,198) (116,614,856)
Sarai (2) (246,799,169) (313,785,234)
Sarai (3) (93,896,344) (102,501,406)
Sarai (Zone H) (6,699,597) (3,895,417)
Sarai (S&R) (36,394,584) -
Total present value discount (1,563,314,628) (1,180,362,492)
Net long term notes receivables 7,316,556,687 6,524,381,851
29

31 December 2020
9. TRADE AND NOTES RECEIVABLE – Continued
31/12/2020 31/12/2019
L.E. L.E.
Short term notes receivable
Tag Sultan 110,366,483 95,851,293
Tag City (Zone T) 555,349,761 607,044,133
Tag City (Zone B) 467,696,547 421,487,838
Tag City (Zone A) 60,982,045 58,121,330
Tag City (Zone G) (*) 70,000,000 -
Premira 2,176,433 2,915,690
Capital Gardens (**) 75,046,738 88,317,274
Sarai (1) 335,172,283 316,548,866
Sarai (2) 796,394,079 663,498,994
Sarai (3) 162,506,502 146,132,002
Sarai (Zone H) 9,996,297 5,531,776
Sarai (S&R) 22,474,451 -
El Waha and Nasr city 6,151,313 7,373,676
El waha and Nasr city lands 18,515,206 34,194,778
2,698,170,831 2,447,017,650
Trade receivables
Tag Sultan 29,052,277 25,053,863
Tag City (Zone T) 140,854,525 157,503,159
Tag City (Zone B) 131,325,932 95,718,578
Tag City (Zone A) 47,605,966 25,350,609
Premira 587,984 1,015,674
Sarai (1) 94,394,027 64,305,302
Sarai (2) 217,212,613 168,187,913
Sarai (3) 57,831,863 42,199,768
Sarai (Zone H) 2,189,227 -
Sarai (S&R) 11,338,275 -
El Waha and Nasr City 49,801,399 61,214,852
El Waha and Nasr City lands 39,887,416 34,704,426
Rent 2,079,380 1,451,882
Others 244,043 146,366
Construction contracts 271,410,369 465,165,908
1,095,815,296 1,142,018,300
Less: Deferred profit & interest on outstanding
installments (Note 16) (101,452,034) (119,644,775)
Less: Impairment of trade receivables (28,694,066) (37,866,433)
965,669,196 984,507,092
(*) A plot of land about 83,000 square meter was sold in Taj City. (Note 24-a)
(**) Capital Gardens' development represents joint operation between the company and
Palm Hills for Development Company S.A.E. in accordance with the signed contract
on 5 July 2015, the company's share is 36% of total operation’s revenues, (Note 23)
30

31 December 2020
9. TRADE AND NOTES RECEIVABLE – Continued

Impairment of trade and notes receivables are as follows:
31/12/2020 31/12/2019
L.E. L.E.
Impairment balance at the beginning of the year 37,866,433 37,866,433

Provided during the year 6,391,395 -
Effect of disposal of Al Nasr for Utilities and Erection (15,563,762) -
28,694,066 37,866,433
10. TRADE PAYABLES – DEBIT BALANCES - NET
31/12/2020 31/12/2019
L.E. L.E.
Trade payables & contractors 544,607,127 803,249,785

Less: Impairment in trade payables – debit balances (12,538,860) (48,310,594)
532,068,267 754,939,191
Impairment of trade payables – debit balance are as follows:

31/12/2020 31/12/2019
L.E. L.E.
Impairment balance at the beginning of the year 48,310,594 47,328,594

Provided during the year 8,768,803 982,000
Effect of disposal of Al Nasr for Utilities and Erection (44,540,537) -
12,538,860 48,310,594
11. DEBTORS AND OTHER DEBIT BALANCES – NET

31/12/2020 31/12/2019
L.E. L.E.
Cheques under collection - 312,966

Notes receivable - 4,840,370
Prepaid expenses 319,152,846 291,871,039
Accrued revenue 1,164,941 1,841,306
Refundable deposits 41,621,224 42,568,135
Other debit balances 5,765,182 14,831,140
367,704,193 356,264,956
Less: Impairment in debtors and other debit balances (83,815) (63,160)
367,620,378 356,201,796
31

31 December 2020
11. DEBTORS AND OTHER DEBIT BALANCES – NET - Continued
Impairment in debtors and other debit balances are as follows:

31/12/2020 31/12/2019
L.E. L.E.
Impairment balance at the beginning of the year 63,160 63,160

Provided during the year 20,655 -
83,815 63,160
12. CASH AND BANK BALANCES

31/12/2020 31/12/2019
L.E. L.E.
Cash on hand 649,314 220,726

Bank current accounts with return 744,792,669 850,852,289
Time deposits (*) 100,354,205 96,720,492
845,796,188 947,793,507
(*) Time deposit included an amount of L.E. 96,734,205 (2019: L.E. 95,369,760) pledged
time deposits against letters of guarantee. (Note 21)
13. UNEARNED REVENUES

31/12/2020 31/12/2019
L.E. L.E.
Tag Sultan 498,461,588 325,163,239

Premira - 4,682,216
Zone T 1,879,992,911 2,286,344,937
Zone B 1,715,723,994 1,548,491,089
Zone A 181,619,320 174,575,597
Zone F 11,897,503 -
Capital Gardens 101,598,982 132,796,823
Sarai (1) 1,268,215,200 1,023,338,774
Sarai (2) 3,056,994,248 2,196,122,974
Sarai (3) 537,861,218 441,764,179
Sarai (Zone H) 48,428,973 16,748,794
9,300,793,937 8,150,028,622
32

31 December 2020
14. PROVISIONS
Disposed of
Provided Al Nasr
Balance at Used during Balance at
during the Company
1/1/2020 the year 31/12/2020
year for Utilities
& Erection
L.E. L.E. L.E. L.E. L.E.
Disputed taxes
provision 11,978,471 - (11,369,063) - 609,408
Claims provision 58,140,162 17,236,178 (22,763,058) (8,500,000) 44,113,282
Legal provision 25,283,918 39,217 (2,565,015) (250,583) 22,507,537
Other provisions 14,213,417 12,167,504 - (17,709,225) 8,671,696
109,615,968 29,442,899 (36,697,136) (26,459,808) 75,901,923
15. INFRASTRUCTURE COMPLETION LIABILITIES
Provided
Balance at Used during Balance at
during the
1/1/2020 the year 31/12/2020
year
L.E. L.E. L.E. L.E.
Tag City 5,339,447 193,688,839 (128,045,572) 70,982,714

Sarai 107,266,834 141,926,519 (161,365,197) 87,828,156
Capital Gardens 4,219,352 19,249,731 (20,495,435) 2,973,648
El Waha 769,903 (20,864) (749,039) -
117,595,536 354,844,225 (310,655,243) 161,784,518
This balance represents estimated amounts to complete utilities for projects that have not been
completely delivered from the contracting companies.
16. DEFERRED PROFIT & INTEREST ON OUTSTANDING INSTALLMENTS
Land Properties Total

L.E. L.E. L.E.
31/12/2020
Balance at beginning of the year 37,449,834 82,194,941 119,644,775
Due during the year (Note 24-a) (5,445,499) (12,336,457) (17,781,956)
Disposals during the year - (410,785) (410,785)
Balance at the end of the year (Note 9) 32,004,335 69,447,699 101,452,034
31/12/2019
Balance at beginning of the year 40,386,717 143,570,045 183,956,762
Additions during the year 6,217,708 - 6,217,708
Due during the year (Note 24-a) (9,154,591) (27,534,158) (36,688,749)
Disposals during the year - (33,840,946) (33,840,946)
Balance at the end of the year (Note 9) 37,449,834 82,194,941 119,644,775
33

31 December 2020
17. CREDITORS AND OTHER CREDIT BALANCES
17/1 Long Term Notes Payable (Net)

31/12/2020 31/12/2019
L.E. L.E.
Madinet Nasr of Housing and Development (Note 7)

Par value (Note 8) 441,011,367 -
Less: Present value discount (128,049,620) -
312,961,747 -
Nasr Company for Civil Work
Long term notes payable 6,737,764 12,127,976
319,699,511 12,127,976
17/2 Creditors and other credit balances

31/12/2020 31/12/2019
L.E. L.E.
Notes payable 56,906,302 169,239,617

Notes payable - Land purchase (*) - 39,255,924
Support to National Housing Project 770,000 880,000
Down payment for reservation of land & property sales 39,625,703 73,924,564
Down payment 6th October 48,970,000 -
Customers’ collection (Gas, water) 1,534,966 796,540
Accrued employees' bonus 8,154,789 8,154,789
Contractors under settlement 8,515,386 24,149,365
Engineering stamp and Building Union stamp 234,864 263,321
Customers’ balances for cancelled reservations 13,009,979 13,115,179
Proceeds for maintenance expenses and counters 7,422,260 8,338,867
Accrued interest on loans 79,780,871 27,854,592
Customers’ deposits under settlement 62,020,437 16,685,835
Governmental authorities 97,621,458 56,367,708
Accrued expenses 2,820,434 36,656,887
Early retirement benefits and others 5,150 1,522,723
Comprehensive medical care 8,730,603 6,396,646
Other 1,365,675 1,499,269
437,488,877 485,101,826
(*) The Company has purchased pieces of lands in Tag City project during 2018 from its
own Customers by L.E. 100,009,500 and it has paid 20% as an advance payment of
total lands price, the rest amount against notes payable over (8) quarterly advances
ended in year 2020.
34

31 December 2020
18. SHARE CAPITAL

Authorized capital:
The authorized capital is five billion Egyptian Pounds.
31/12/2020 31/12/2019
L.E. L.E.
Issued and paid up:
1.44 billion shares of L.E. 1 per share 1,440,000,000 1,440,000,000
Following are a list of percentage of shares of issued and paid up capital for shareholders as
of 31 December 2020:
Nominal Contribution
No, of shares
Value %
L.E.
BIG Investment Group Ltd. 286,309,039 286,309,039 19,88
Holding Co. for Construction and Development 218,742,298 218,742,298 15,19
B Investment Holding Co. 107,355,324 107,355,324 7,46
National Investment Bank 54,848,849 54,848,849 3,81
Al Alian Co.
for Investments Ltd. 53,069,241 53,069,241 3,69
Banque Misr 45,627,636 45,627,636 3,17
Other shareholders 674,047,613 674,047,613 46,8
1,440,000,000 1,440,000,000 100
List of percentage of shares of issued and paid up capital for shareholders as of 31 December
2019 is as follows:
Nominal value Contribution

Name No, of shares
L.E. %
BIG Investment Group Ltd. 286,309,039 286,309,039 19,88
Holding Co. for Construction and
Development 218,742,298 218,742,298 15,19
B Investment Holding Co. 107,355,324 107,355,324 7,46
National Investment Bank 53,069,241 53,069,241 3,69
Al Alian Co. for Investments Ltd. 50,963,824 50,963,824 3,54
Banque Misr 45,627,636 45,627,636 3,17
Other shareholders 677,932,638 677,932,638 47,07
1,440,000,000 1,440,000,000 100
35

31 December 2020
19. NON-CONTROLLING INTEREST

Disposed
Non- Non- of Al
Non-
controlling controlling Nasr
controlling
Balance at interest interest Company Balance at
interest in
1/1/2020 share in net share in for 31/12/2020
net assets
Profit/loss the Utilities
%
the year Dividends and
Erection
L.E. L.E. L.E. L.E. L.E.
Al Nasr Company for

Civil Works 47.54% 112,042,396 (12,844,509) (6,306,876) - 92,891,011
Al Nasr Company for
Utilities & Erection (1,728,783) - - 1,728,783 -
Total non-controlling
interest 110,313,613 (12,844,509) (6,306,876) 1,728,783 92,891,011
20. TERM LOANS
Madinet Nasr for Housing & Development S.A.E.
Balance at
Withdrawals Installments Balance at
the
during the paid during the end of the
beginning
year the year year
of the year
L.E. L.E. L.E. L.E.
31/12/2020
a) National Investment Bank 813,504 - (384,935) 428,569
b) Commercial International Bank 714,939,305 56,527,922 (28,067,001) 743,400,226
c) Egyptian Gulf Bank - 88,165,913 - 88,165,913
d) Syndication loan - Sarai compound - 657,061,950 - 657,061,950
e) Syndication loan – Notes receivable
discount - 734,096,661 (33,782,270) 700,314,391
715,752,809 1,535,852,446 (62,234,206) 2,189,371,049
Classified in the statement of financial position as follows:
Current Balance at
portion of Term loans the end of the
term loans year
31/12/2020 L.E. L.E. L.E.
a) National Investment Bank 238,180 190,389 428,569
b) Commercial International Bank 193,283,924 550,116,302 743,400,226
c) Egyptian Gulf Bank 11,020,739 77,145,174 88,165,913
d) Syndication loan - Sarai compound - 657,061,950 657,061,950
e) Syndication loan – Notes receivable discount 15,689,707 684,624,684 700,314,391
220,232,550 1,969,138,499 2,189,371,049
36

31 December 2020
20. TERM LOANS - Continued

(A) (B)
National Commercial
Investment International Total
Bank Bank
L.E. L.E. L.E.
31/12/2019
Balance at the beginning of the year 1,237,813 375,310,381 376,548,194
Proceeds during the year - 476,905,559 476,905,559
Installments paid during the year (424,309) (137,276,635) (137,700,944)
Balance at the end of the year 813,504 714,939,305 715,752,809
Classified in financial position as follows:

Current liabilities:
Current portion of term loans 384,935 28,067,001 28,451,936
Non-current liabilities:
Term loans 428,569 686,872,304 687,300,873
21. CASH AND CASH EQUIVALENTS
Cash and cash equivalents included in the consolidated statement of cash flows comprise the
following consolidated financial position amounts:
31/12/2020 31/12/2019
L.E. L.E.
Cash and bank balances (Note 12) 845,796,188 947,793,507
Investment at fair value through profit and loss
(Note 6/4) 2,825,673 12,990,817
Held to maturity investment - short term (Note 6/5) 914,223,521 425,580,885
Less:
Credit banks (credit facilities) (Note 21/2) (356,377,080) (216,717,683)
Cash and cash equivalents at the end of the year 1,406,468,302 1,169,647,526
Less:
Pledged time deposits against letters of guarantee
(Note 12) (96,734,205) (95,369,760)
Pledged investment certificates against letters of
guarantee (Note 6/4) (1,035,000) (10,468,303)
Cash and cash equivalents at the end of the year 1,308,699,097 1,063,809,463
21/1 SHORT TERM LOAN

31/12/2020 31/12/2019
L.E. L.E.
Balance at the beginning of the year 464,595,367 111,666,664
Proceeds during the year 1,673,844,251 697,928,949
Installments and interests paid during the year (1,266,217,286) (345,000,246)
Balance at the end of the year 872,222,332 464,595,367
37

31 December 2020
21. SHORT TERM LOAN - Continued
21/2 CREDIT BANKS (CREDIT FACILITIES)
The balance of credit banks are summarized as follows:

31/12/2020 31/12/2019
L.E. L.E.
Madinet Nasr for Housing Development (Parent

company) 292,398,696 159,769,002
Al Nasr Company for Civil Works (Subsidiary) 63,978,384 56,869,254
Al Nasr Company for Utilities and Erections - 79,427
356,377,080 216,717,683
22. BANK CURRENT ACCOUNTS AND DEPOSITS OF COMPOUNDS

FACILITY MANAGEMENT
31/12/2020 31/12/2019
L.E. L.E.
Treasury Bills 534,674,204 -

Bank current saving accounts 71,740,156 77,086,048
Time deposits 10,305,282 331,437,394
Cheques under collection 174,198,721 64,544,501
Accrued revenues 415,371 2,170,772
Bank deposits of compounds facility management 791,333,734 475,238,715
Amounts under settlement (18,596,213) 1,222,765
Liabilities of compounds facility management 772,737,521 476,461,480
The checks received from the customers for the compounds facility management amounted to
L.E. 1,781,555,414 (2019: L.E. 1,377,991,430), including collections of L.E. 791,333,734
(2019: L.E. 475,238,715) invested in deposits and interest-bearing bank accounts and treasury
bills with face value amounting to L.E. 544,350,000 and the remaining balance amounting to
L.E. 990,221,680 represents notes receivable at 31 December 2020 (2019: L.E. 902,752,715)
and will be collected on maturity dates during the subsequent periods. The deposit's term
ranges from 1 to 6 months.
23. TRANSACTIONS WITH RELATED PARTIES

Balance at Balance at
Nature of Nature of
31/12/2020 31/12/2019
relationship Account
L.E. L.E.
Capital Gardens project Long term

Joint operation
notes payable 182,749,476 293,197,421
Discount of
present value (59,666,311) (109,472,493)
Net 123,083,165 183,724,928
Short term
notes payable 75,046,738 88,317,274
198,129,903 272,042,202
38

31 December 2020
24. REVENUES AND COST OF REVENUES
24-a Net Revenues

31/12/2020 31/12/2019
L.E. L.E.
Property sales revenue
Tag Sultan 145,105,506 199,616,488
Premira 4,682,216 27,501,950
Tag City (Zone T) 400,570,391 172,467,249
Tag City (Zone B) 159,363,365 170,890,459
Tag City (Zone A) 9,609,363 57,252,846
Capital Garden 30,667,608 6,385,725
Sarai City 1 181,148,829 90,197,483
Sarai City 2 705,915,464 472,413,920
Sarai City 3 175,495,293 271,674,256
Sarai City Zone H 13,300,875 7,031,962
Nasr Gardens 87,681,164 -
Nasr City 6,152,059 -
Property sales revenue 1,931,589,633 1,475,432,338
Land sales revenue - Tag City (*) 1,249,155,751 -
Land sales revenue – Sari (S&R) 94,021,547 -
Land sales revenue – El Waha and Nasr City - 49,592,360
Land sales revenue – Tag City (Zone A) - 115,205,441
Total property and land sales revenues 3,274,766,931 1,640,230,139
Contracting revenues - Al Nasr Company for Civil
Works 171,106,644 273,058,071
Contracting revenues - Al Nasr Company for Utilities &
Erections 174,005,375 137,344,237
Less: Property sales returns
Tag Sultan (6,808,825) (10,851,024)
Tag City (Zone T) (98,819,985) (71,753,277)
Tag City (Zone B) (90,131,115) (60,282,037)
Tag City (Zone A) (6,652,067) (1,443,903)
Capital Garden (15,944,100) (10,232,062)
Sarai City 1 (74,608,230) (27,759,751)
Sarai City 2 (200,540,495) (148,957,179)
Sarai City 3 (75,938,736) (12,979,344)
El Waha (253,242) (417,000)
Total property sales returns (569,696,795) (344,675,577)
Net sales 3,050,182,155 1,705,956,870
Amortization of discount of present value of notes
receivable 437,280,188 456,760,121
Early payment discount (409,619,102) -
Profit & interest from deferred sales installments during
the year (Note 16) 17,781,956 36,688,749
Return on investment properties 1,281,354 1,222,486
Net revenue 3,096,906,551 2,200,628,226
39

31 December 2020
24. SALES AND COST OF SALES - Continued
(*) - Plot of land of about 115,000 square meters was sold on 3 March 2020 to build a full-
service residential project with a total selling value of L.E. 1,145 billion in
installments for a period of 7 years, and the revenue was recorded with present value
of L.E. 718 million. The company has signed loan contract and discounting received
notes receivable from the selling contract of the plot of land.
- Plot of land of about 83,000 square meters was sold on 30 December 2020 to build a
full-service residential project with a total selling value of L.E. 836 million in
installments for a period of 7 years, and the revenue was recorded with present value
of L.E. 531 million. The company has collected 5 million bound at 31 December 2020
and L.E. 70 million in subsequent events at 21 January 2021.
24-b Cost of Revenues

31/12/2020 31/12/2019
L.E. L.E.
Sold property
Tag Sultan 65,636,648 112,355,194
Premira 5,262,202 37,154,836
Tag City (Zone T) 331,267,810 22,341,608
Tag City (Zone B) 31,448,391 33,891,780
Tag City (Zone A) 1,062,928 6,381,883
Tag City (Zone F) 682,500 -
Capital Garden 24,959,822 165,986
Sarai City 1 30,753,278 21,028,773
Sarai City 2 93,122,826 66,898,562
Sarai City 3 10,612,149 18,314,490
Sarai City Zone H 904,112 458,140
Nasr Gardens 78,073,374 -
Total cost of properties sales 673,786,040 318,991,252
Cost of land sold Tag city 408,197,400 -
Cost of land sold Sari S&R 45,457,603 -
Cost of land sold El Waha and Nasr City - 3,046,929
Cost of land sold Tag city (Zone A) - 17,690,400
Total cost of land and finished properties sales 1,127,441,043 339,728,581
Cost - Al Nasr Company for Civil Works 163,244,841 209,359,546
Cost - Al Nasr Company for Utilities and Erections 165,768,204 132,976,439
Less: Cost of sold property sales returns:
Tag Sultan (1,263,035) (3,107,556)
Tag City (Zone T) (9,572,714) (6,293,051)
Tag City (Zone B) (10,567,997) (6,229,044)
Tag City (Zone A) (759,740) (170,652)
Capital Garden (653,796) (350,608)
Sarai City 1 (12,194,195) (4,586,584)
Sarai City 2 (33,213,631) (29,875,613)
Sarai City 3 (4,868,021) (820,402)
Nasr City (178,239) -
El Waha - (172,846)
Total cost of returns (73,271,368) (51,606,356)
Net cost of sales 1,383,182,720 630,458,210
Depreciation of investment properties (Note 6/3) 59,652 59,652
Cost of investment properties - 13,863
Cost of revenues 1,383,242,372 630,531,725
40

31 December 2020
25. CONSTRUCTIONS COMMITMENTS
Al Nasr Co. for Civil Works – (Subsidiary Company)
Contracts for executing utilities and civil constructions amounted to L.E. 3,413 million at
31 December 2020, while the executed amount till that date amounted to L.E. 3,000 million.
26. SELLING AND MARKETING EXPENSES

31/12/2020 31/12/2019
L.E. L.E.
Salaries and wages 11,987,625 10,630,078

Selling and marketing commissions 117,437,376 65,435,388
Advertising expenses (including stamp tax) 79,484,147 118,677,841
Rent 23,246,542 12,311,769
Professional fees 7,765,695 6,367,350
Depreciation (Note 4/1) 12,816,645 4,125,217
Amortization of intangible assets (Note 5) 66,295 49,887
Sundry expenses 7,670,708 6,941,898
260,475,033 224,539,428
27. GENERAL AND ADMINISTRATIVE EXPENSES

31/12/2020 31/12/2019
L.E. L.E.
Salaries, wages and equivalent 51,453,715 49,714,407

Board of Directors salaries and allowances 13,112,170 10,166,923
Depreciation (Note 4/1) 4,927,198 4,609,280
Amortization of intangible assets (Note 5) 5,182,158 5,614,091
Other expenses 74,879,241 62,097,423
149,554,482 132,202,124
28. OTHER OPERATING EXPENSES

31/12/2020 31/12/2019
L.E. L.E.
Administrative expenses from customers 26,257,992 16,128,716
29. FINANCE INCOME

31/12/2020 31/12/2019
L.E. L.E.
Income from investments at fair value through

profit or loss 1,323,522 1,654,952
Credit interest 69,442,359 71,729,348
Return on treasury bills 38,282,438 25,513,187
Return on stocks - 532,750
109,048,319 99,430,237
30. OTHER OPERATING INCOME

41

31 December 2020
31/12/2020 31/12/2019
L.E. L.E.
Administrative fees 11,277,321 55,493,168

Customers delay payment penalties 16,302,088 18,631,708
Contractors delivery delay penalties 1,767,997 201,610
Sundry revenue 3,572,361 15,518,006
Gain on sale of fixed assets - 695,770
Gain on sale of raw materials - 169,635
32,919,767 90,709,897
31. OTHER EXPENSES

31/12/2020 31/12/2019
L.E. L.E.
Compensations and fines 1,276,288 143,901

Capital loss 5,550 5,939,837
Comprehensive medical care 8,069,314 -
Donations for others 2,000,000 -
Loss on foreign exchange 139,469 314,360
Bad debts - 227,916
Sundry expenses 1,112,375 1,959,684
12,602,996 8,585,698
32. CONSOLIDATED STATEMENT OF INCOME

31/12/2020 31/12/2019
L.E. L.E.
Net profit from Madinet Nasr for Housing &

Development S.A.E. 1,018,697,888 934,889,256
Group portion in net (losses)/ profits of subsidiaries
companies (25,947,298) 16,762,550
Elimination effect of impairment in investments - 10,527,907
Elimination effect of return from investments in
subsidiaries (2,880,009) (1,920,006)
Elimination effect of impairment in related parties - 20,636,020
Elimination effect of disposal of NCUE 11,773,487 -
Elimination effect of revenue and cost from transaction
with related parties (406,020) -
1,001,238,048 980,895,727
42

31 December 2020
33. CONTINGENT LIABILITIES
 Madinet Nasr for Housing & Development S.A.E.
The letters of guarantees issued amounted to L.E. 40,247,960 by National Bank of Egypt,
United Bank and Egyptian Gulf Bank as of 31 December 2020 to finance business activity
(2019: L.E. 59,222,720), the letters are secured by the company’s time deposits amounted
to L.E. 1,980,000 (2019: L.E. 4,249,268) and margin of letters of guarantee by L.E.
2,158,252 (2019: L.E. 8,892,374) and investment certificates (Rakhaa) in united bank by
L.E. 1,035,000 (2019: L.E. 10,468,303).
 Al Nasr Co. for Civil Works – (Subsidiary Company)
On 31 December 2020, contingent liabilities represents letters of guarantee issue by banks

on behalf of the company for others against execution contracts amounted to L.E.
196,438,231 (2019: L.E. 241,640,683).
34. DEFERRED TAX
Madinet Nasr for Housing and Development (Parent company)
31/12/2020 31/12/2019
Assets (Liabilities) Assets (Liabilities)
L.E. L.E. L.E. L.E.
Fixed assets - (2,077,044) - (3,353,156)

Provisions 14,887,455 - 4,944,935 -
Total deferred tax 14,887,455 (2,077,044) 4,944,935 (3,353,156)
Net deferred tax assets 12,810,411 - 1,591,779 -
Deferred tax charged to the statement
of income 11,218,632 - - (286,786)
31/12/2020 31/12/2019
L.E. L.E.
Unrecorded deferred tax assets (provisions( 15,661,382 43,000,290
Al Nasr Company for Civil Works – (Subsidiary Company)
31/12/2020 31/12/2019
Assets (Liabilities) Assets (Liabilities)
L.E. L.E. L.E. L.E.
Fixed assets 178,475 - - (131,369)

Provisions 7,622,857 - 4,623,801 -
Total deferred tax 7,801,332 - 4,623,801 (131,369)
Net deferred tax assets 7,801,332 - 4,492,432 -
Deferred tax charged to the statement of
income 3,308,900 - - (1,757,983)
The effect on consolidated financial

statements
Total deferred tax asset (financial position) 20,611,743 - 6,084,211 -
Total charged to the statement of income 14,527,532 - - (2,044,769)
43

31 December 2020
35. TAX STATUS
Madinet Nasr for Housing and Development S.A.E. (Parent company)
The company submits tax returns to the Tax Authority on due dates and pays taxes according
to these returns.
Al Nasr Company for Civil Works – S.A.E. (Subsidiary company)
Tax returns submitted on due dates, the tax has been settled and paid.
36. EARNINGS PER SHARE

31/12/2020 31/12/2019
L.E. L.E.
Net profit for the year after tax 1,001,238,048 980,895,727

Less: Board of Directors and employees
share in profit (116,409,146) (105,365,443)
Shareholders share in net profit 884,828,902 875,530,284
Weighted average numbers of shares
outstanding during the year 1,434,864,196 1,440,000,000
Earnings per share 0.617 0.608
37. FINANCIAL INSTRUMENTS AND RELATED RISKS
On-balance sheet financial instruments comprise cash and bank balances, financial
investments, debtors, creditors, and amounts due from/to related parties. Notes to the financial
statements include the accounting policies adopted in the recognition and measurement of
financial instruments.
The significant risks associated with the financial instruments and the procedures followed by
the company to mitigate these risks are as follows:
 Credit risk
Credit risk is the risk that debtors fail to settle the amounts due from them. The company
seeks to reduce this risk to the minimum by agreeing with the customers to transfer
property after settling all of their debts, also the company charges customers for delay
penalties calculated on settlement.
44

31 December 2020
37. FINANCIAL INSTRUMENTS AND RELATED RISKS - Continued
 Liquidity risk
Liquidity risk represents all factors which affect the company’s ability to pay part or all of
its obligations. According to the company’s policy sufficient liquidity is maintained which
reduce the risk to the minimum.
The following are due dates of the financial liabilities:

Less than 1–2 More than Book value
one year Years 2 years
L.E. L.E. L.E. L.E.
31/12/2020
Term loans 220,232,550 404,450,458 1,564,688,041 2,189,371,049
Creditors and other credit balances 437,488,877 - - 437,488,877
Short term loans 872,222,332 - - 872,222,332
Trade payables and Tax Authority 935,053,333 - - 935,053,333
Long term notes payable - 142,881,863 176,817,648 319,699,511
2,464,997,092 547,332,321 1,741,505,689 4,753,835,102
31/12/2019
Term loans 28,451,936 164,849,352 522,451,521 715,752,809
Creditors and other credit balances 485,101,826 - - 485,101,826
Short term loans 464,595,367 - - 464,595,367
Trade payables and Tax Authority 848,312,978 - - 848,312,978
Long term notes payable - 5,390,212 6,737,764 12,127,976
1,826,462,107 170,239,564 529,189,285 2,525,890,956
 Interest rate risk
Interest rate risk represents the risk of changes in the rate of interest. Time deposits, loans
and bank overdrafts are subject to this risk. The company uses most of its deposits in
settling its loans and overdraft balances whenever a gap between debit and credit interest
rates takes place in order to reduce this risk to the minimum as possible.
The following are the financial assets and liabilities according to interest rate type:
31/12/2020 31/12/2019
L.E. L.E.
Financial assets instruments with fixed interest rate
Financial assets (trade and notes receivable) 12,720,402,100 11,368,623,822
Financial liabilities instruments with floating interest rate
Financial liabilities (Long- and short-term loans and
credit banks) 3,417,970,461 1,397,065,859
 Foreign currency risk
Foreign currency risk represents the changes in the currency rates which affect the receipts
and disbursements and the translation of assets and liabilities in foreign currencies. The
company policy is not to take a loan in foreign currencies nor keep significant balances in
currencies other than Egyptian pound.
45

31 December 2020
38. CONTRACTUAL COMMITMENTS
The value of contracts with contractors for the implementation of lands, unfinished and
finished properties amounted to L.E. 5,480 million, the executed works till 31 December 2020
amounted to L.E. 3,767 million. Contractors' dues have been paid in accordance with the
contracts.
39. FAIR VALUE
The fair values of financial assets and liabilities are not materially different from their
carrying value at the financial position date, except for investments available for sale.
40. CURRENT EVENTS
Most of the world’s countries, including Egypt were exposed during the first quarter of 2020
to the spread of Corona Pandemic (COVID-19) which has caused disturbance of most of
commercial and economic activities in general. So it is probably effect on the results of the
financial statements, and as mentioned above in the paragraph, the company taking several
measures to face this risk and reducing its impact in the financial position and supporting its
continuity.
41. COMPARATIVE FIGURES
Certain of prior year’s figures have been reclassified to conform with the presentation of the
current year.
31/12/2019 31/12/2019
Before After
Reclassification
reclassification reclassification
L.E. L.E. L.E.
Cost of revenues 640,371,176 (9,839,451) 630,531,725

General and administrative expenses 138,491,389 (6,289,265) 132,202,124
Other operating expenses - 16,128,716 16,128,716
Fixed assets 72,953,153 (7,188,415) 65,764,738
Intangible assets - 7,188,415 7,188,415
Cash and bank balances 949,570,061 (1,776,554) 947,793,507
Creditors and other credit balances 486,878,380 1,776,554 485,101,826
Bank current accounts and deposits of
compounds facility management 475,493,384 (254,669) 475,238,715
Liabilities of compounds facility
management 476,716,149 254,669 476,461,480
46

Nasr City Cons 12 2020E

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Nasr City - Cons 12-2020E

MADINET NASR FOR HOUSING AND

Contents Page Number

- Statement of Financial Position 2-3

- Statement of Income (Profit or Loss) 4

- Statement of Comprehensive Income 5

- Statement of Changes in Equity 6

- Statement of Cash Flows 7-8

- Notes to the Financial Statements 9-46

Madinet Nasr for Housing and Development S.A.E.

EQUITY AND LIABILITIES

CFO and Head of investors

Madinet Nasr for Housing and Development S.A.E.

Auditor’s report attached.

CFO and Head of investors

Madinet Nasr for Housing and Development S.A.E.

Net revenues 24-a 3,096,906,551 2,200,628,226

Earnings per share for the year 36 0.617 0.608

CFO & Head of Investors

Madinet Nasr for Housing and Development S.A.E.

Net profit for the year 988,393,539 1,000,995,614

CFO & Head of Investors

Madinet Nasr for Housing and Development S.A.E.

Issued and Total Non-

CFO & Head of Investors

Madinet Nasr for Housing and Development S.A.E.

Inventories, unfinished and finished properties (2,445,786,708) (1,423,021,187)

Madinet Nasr for Housing and Development S.A.E.

Change in cash and cash equivalents 236,960,245 723,895,658

CFO & Head of Investors

Madinet Nasr for Housing and Development S.A.E.

1.1 Legal form of the company

Madinet Nasr for Housing and Development S.A.E.

1. COMPANY BACKGROUND - Continued

1.5 Basis of consolidation

 Power over the investee.

Investments in subsidiaries are carried at cost less impairment losses, if any.

 The consolidated financial statements include the financial statements of the

The following is a listing of subsidiaries:

Al Nasr for Civil Works S.A.E. 52.46% Civil construction

Madinet Nasr for Housing and Development S.A.E.

2. USE OF ESTIMATES AND JUDGMENTS

The preparation of consolidated financial statements in accordance with Egyptian Accounting

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Summary of significant accounting policies

3.1.1 Basis of preparation of consolidated financial statements

The consolidated financial statements are presented in Egyptian Pounds which

Madinet Nasr for Housing and Development S.A.E.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

3.1.2 Fixed assets and depreciation

MNHD NCCE NCUE

Buildings 40 10-40 20-50

Madinet Nasr for Housing and Development S.A.E.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Fixed assets under construction

3.1.3 Intangible assets

The first measurement

Subsequent expenditures on the acquisition of intangible assets are capitalized only