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GB Auto and its Subsidiaries (S.A.E)
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GB Auto
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2012 ANNUAL REPORT
1. General information
GB Auto Co. (the Company) is an Egyptian joint stock company incorporated on 15 July 1999 under the name of GB Capital for Trading
and Capital Lease and under Law No. 159 of 1981. The company is commercially registered under No. 3422, Cairo.
Based on the decision of the Extraordinary General Assembly Meeting held on 26 April 2007, it was agreed to changing the Company
name to be GB Auto. The update of the company’s name was approved in the commercial register on 23 May 2007.
The company is located in the Industrial Zone – Abou Rawash Kilo meter 28 Cairo – Alexandria Desert Road, Arab Republic of Egypt.
The company and its subsidiaries (will be referred to as “the Group”) main activities include trading, distributing and marketing of all
transportation means including heavy trucks, semi trucks, passenger cars, buses, mini buses, micro buses, agriculture tractors, pick-ups,
mechanical tools equipments for sail movement and motors with their different structures and types whether locally manufactured and
imported (new and used ones) and trading in spare parts and accessories whether locally manufactured or imported. The Group also un-
dertakes import and export activities, trading agencies, selling locally manufactured and imported products for cash, on credit or through
finance leasing. The group also provides group transportation services and cargo services.
The major shareholders of the company are Dr. Raouf Ghabbour and his family who collectively owns approximately 70.56% of the Com-
pany shares.
The consolidated financial statements are approved for issuance by the chairman and managing director on 5 March 2013.
2. Significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are summarized below.
A. Basis of preparation of consolidated financial statements
The consolidated financial statements have been prepared in accordance with Egyptian Accounting Standards (EAS) and applicable
laws and regulations. The consolidated financial statements have been prepared under the historical cost convention, as modified by
the revaluation of certain financial assets and liabilities at fair value.
The preparation of consolidated financial statements in conformity with Egyptian Accounting Standards requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s account-
ing policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates that are
significant to the consolidated financial statements are disclosed in Note 4.
EAS requires the reference to International Financial Reporting Standards (IFRS) when there is no EAS, or legal requirements that
explain the treatment of specific balances and transactions.
B. Basis of consolidation
(a)Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting rights. The existence and effect of
potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls
another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the
date that control ceases.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is
measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange,
plus costs directly attributable to the acquisition.
Notes to the Consolidated Financial Statements
For the year ended 31 December 2012
(In the notes all amounts are shown in thousand Egyptian pounds unless otherwise stated)