Emirates Integrated Telecommunications Company PJSC and Its Subsidiaries Consolidated Financial Statements For The Year Ended 31 December 2021

Emirates Integrated Telecommunications
Company PJSC and its subsidiaries
Consolidated financial statements

for the year ended 31 December 2021
Emirates Integrated Telecommunications Company PJSC and its subsidiaries
Consolidated financial statements

Pages
Independent auditors’ report 1–6
Consolidated statement of financial position 7
Consolidated statement of comprehensive income 8
Consolidated statement of changes in equity 9
Consolidated statement of cash flows 10
Notes to the consolidated financial statements 11 – 71

Deloitte & Touche (M.E.)
Building 3, Level 6
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P.O. Box 4254
Dubai
United Arab Emirates
Tel: +971 (0) 4 376 8888

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www.deloitte.com
August 17th, 2016

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF
EMIRATES INTEGRATED TELECOMMUNICATIONS COMPANY PJSC
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Opinion
We have audited the consolidated financial statements of Emirates Integrated Telecommunications

Company PJSC (“EITC” or “the Company”) and its subsidiaries (collectively referred to as “the Group”),
which comprise the consolidated statement of financial position as at 31 December 2021, and the
consolidated statement of comprehensive income, consolidated statement of changes in equity and
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at 31 December 2021, and its financial performance
and its cash flows for the year then ended in accordance with International Financial Reporting Standards
(IFRSs).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit
of the consolidated financial statements section of our report. We are independent of the Group in
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code) together with the other ethical requirements that are relevant to
our audit of the Group’s consolidated financial statements in the United Arab Emirates, and we have
fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements of the current year. We have communicated the key audit
matters to the Audit Committee but they are not a comprehensive reflection of all matters that were
identified by our audit and that were discussed with the Audit Committee. On the following pages, we
have described the key audit matters we identified and have included a summary of the audit procedures
we performed to address those matters.
The key audit matters were addressed in the context of our audit of the consolidated financial statements
as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Akbar Ahmad (1141), Cynthia Corby (995), Georges Najem (809), Mohammad Jallad (1164), Mohammad Khamees Al Tah (717),
Musa Ramahi (872), Mutasem M. Dajani (726), Obada Alkowatly (1056), Rama Padmanabha Acharya (701) and Samir Madbak
(386) are registered practicing auditors with the UAE Ministry of Economy.
EMIRATES INTEGRATED TELECOMMUNICATIONS COMPANY PJSC (continued)
Key audit matter How our audit addressed the Key audit matter
Revenue recognition and related IT systems
The Group reported revenue of AED 11.68 billion Our audit procedures included a combination of
from telecommunication and related activities. controls testing, data analytics and other
substantive procedures, but were not limited to the
We focused on this area of the audit as there is an following:
inherent risk related to revenue recognition given
the complexity of the systems and changing mix • performing enhanced risk assessment
of business products and services including a procedures in response to the significant
variety of plans available for consumer and economic disruption associated with the
enterprise customers, tariff structures, roaming COVID-19 pandemic and increasing audit
and international hubbing (‘wholesale’) effort to challenge whether the revenue
agreements, site sharing agreements, incentive recognition criteria adopted for significant
programmes and discounts. revenue streams is appropriate and in
accordance with IFRSs;
Due to the estimates made, complexities involved • obtaining an understanding of the significant
and judgements applied in the revenue process revenue processes including performance of
and the degree of complexity of IT systems and an end to end walkthrough of the revenue
processes used, we have considered this matter as process and identifying the relevant controls
a key audit matter. (including Information Technology (“IT”)
systems, interfaces, revenue assurance and
The Group’s accounting policies relating to reports);
revenue recognition are presented in note 3 and • testing the design and implementation as well
details about the Group’s revenue are disclosed in as the operating effectiveness of the relevant
note 34 to the consolidated financial statements. controls;
• involving our internal IT specialists to test IT
general controls, system interfaces,
data/information reporting and application
specific controls surrounding relevant revenue
systems;
• reviewing significant new contracts on sample
basis and the regulatory pronouncements, the
accounting treatments adopted and testing the
related revenues recognised during the year;
• performing data analysis and substantive
analytical procedures of significant revenue
streams;
• reviewing key reconciliations performed by
the Revenue Assurance team;
• performing test of details on non-routine
adjustments processed by management which
are outside of normal billing platform;
• performing specific procedures to test the
accuracy and completeness of adjustments
relating to grossing up certain revenue and
costs; and
• assessing the disclosures in the consolidated
financial statements relating to revenue
against the requirements of IFRSs.
Key audit matter How our audit addressed the Key audit matter
Federal royalty computation
The federal royalty is a significant charge levied In responding to this risk, our audit procedures
against regulated revenues of the Group and included, but were not limited to, the following:
against operating profits, based on fixed
percentages, as disclosed in Note 2.3 to the • obtaining an understanding of the process used by
consolidated financial statements. management to determine the federal royalty
charge and related accrual;
The federal royalty charge for the year is • testing the design and implementation of the
AED 1.38 billion for the year with an accrual of relevant controls over the calculation of the
AED 1.50 billion as at 31 December 2021. federal royalty charge;
• holding meetings with management to discuss the
We focused on this area of the audit as the royalty federal royalty calculation and inspecting
calculations are subject to significant judgements, correspondence from the MOF relating to this
interpretations and assumptions in respect of the matter;
definition of regulated items, the determination of • assessing the judgements applied in the
certain allowable deductions and allocated costs calculation of the federal royalty for the current
and the treatment of royalties on site sharing year against the guidelines provided by the MOF
transactions. and the abovementioned correspondence;
• evaluating the classification of regulated and non-
These are also subject to change from time to time regulated revenues in the calculation of the federal
as per the guidelines provided by the United Arab royalty on the telecommunication operations;
Emirates Ministry of Finance (“the MoF”) are • testing the allocation of indirect costs on
amended or as clarifications are received from the nonregulated activities based on clarifications
MoF. received from the MOF;
• evaluating the exclusion of items which were not
Accordingly, the computation of the federal included in the calculation of the federal royalty
royalty for the year ended 31 December 2021 is against the guidelines and the clarifications
considered to be a key audit matter. received from the MOF;
• reperforming the arithmetical accuracy of the
The critical accounting estimates made and
calculation of the federal royalty for the year; and
judgements applied by management are disclosed
• assessing the disclosures in the consolidated
in note 2.3 and further details about the federal
financial statements against the requirements of
royalty are disclosed in note 27 to the
consolidated financial statements. IFRSs.
Other Information
Management is responsible for the other information. The other information comprises the Board of
Directors’ report which we obtained prior to the date of this auditor’s report, and the Group’s Annual
Report, which is expected to be made available to us after that date. The other information does not
include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance or conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
When we will read the Group’s Annual Report, if we conclude that there is a material misstatement
therein, we will be required to communicate the matter to those charged with governance and consider
whether a reportable irregularity exists in terms of the auditing standards, which must be reported.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRSs and the requirements of the UAE Federal Law No. (2) of 2015 (as
amended) and the applicable provisions of the articles of association of the Company, and for such
internal control as the management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to
the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditors’ report. However, future events or conditions may cause the Group to cease to continue as a
going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements (continued)
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Further, as required by the UAE Federal Law No. (2) of 2015 (as amended), we report that:
• We have obtained all the information we considered necessary for the purposes of our audit;
• The consolidated financial statements have been prepared and comply, in all material respects, with
the applicable provisions of the UAE Federal Law No. (2) of 2015 (as amended);
• The Group has maintained proper books of account;
• The financial information included in the Board of Directors’ report is consistent with the books of
account of the Group;
• As disclosed in note 1 to the consolidated financial statements, the Group has not made investments
in any shares during the financial year ended 31 December 2021;
• Note 15 to the consolidated financial statements discloses material related party transactions and
balances, and the terms under which they were conducted;
• Based on the information that has been made available to us, nothing has come to our attention which
causes us to believe that the Company has contravened during the financial year ended 31 December
2021 any of the applicable provisions of the UAE Federal Law No. (2) of 2015 (as amended) or of its
Articles of Association which would materially affect its activities or its financial position as at
31 December 2021; and
• Note 26 to the consolidated financial statements discloses the social contributions made by the Group
during the year ended 31 December 2021.
Deloitte & Touche (M.E.)
Rama Padmanabha Acharya

Registration Number 701
11 February 2022
Dubai
United Arab Emirates
Consolidated statement of financial position
As at 31 December
2021 2020
Notes AED 000 AED 000
ASSETS
Non-current assets
Property, plant and equipment 6 9,068,070 8,063,422
Right-of-use assets 7 1,649,765 1,851,429
Intangible assets and goodwill 8 859,195 900,215
Lease receivable 9 139,422 149,963
Investments accounted for using the equity method 10 24,272 29,835
Financial asset at fair value through other comprehensive income 11 18,368 18,368
Contract assets 12 273,410 211,216
Trade and other receivables 13 83,338 -
Total non-current assets 12,115,840 11,224,448
Current assets
Inventories 14 58,469 61,513
Lease receivable 9 16,371 18,213
Contract assets 12 462,841 454,101
Trade and other receivables 13 1,961,542 1,726,401
Due from related parties 15 48,655 139,869
Term deposits 16 1,374,248 2,029,327
Cash and bank balances 17 641,380 213,375
Total current assets 4,563,506 4,642,799
Total assets 16,679,346 15,867,247
EQUITY AND LIABILITIES
Equity
Share capital 23 4,532,906 4,532,906
Share premium 24 232,332 232,332
Other reserves 25 2,018,485 1,908,411
Retained earnings 1,748,164 1,895,763
Total equity 8,531,887 8,569,412
Non-current liabilities
Lease liabilities 18 1,553,484 1,691,727
Contract liabilities 12 247,073 195,149
Provision for employees’ end of service benefits 20 238,438 254,037
Other provisions 21 198,588 184,581
Total non-current liabilities 2,237,583 2,325,494
Current liabilities
Trade and other payables 22 4,592,913 3,991,797
Lease liabilities 18 671,502 616,896
Contract liabilities 12 438,734 358,538
Due to related parties 15 6,727 5,110
Borrowings 19 200,000 -
Total current liabilities 5,909,876 4,972,341
Total liabilities 8,147,459 7,297,835

Total equity and liabilities 16,679,346 15,867,247
To the best of our knowledge, the financial information included in these consolidated financial statements fairly
presents in all material respects the financial condition, results of operation and cash flows of the Group as of,
and for, the periods presented therein. The consolidated financial statements were approved by the Board of
Directors on 11 February 2022 and signed on its behalf by:
…………………………………………. ……………………………………………
Sara Awad Issa Musallam Kais Ben Hamida
Board Member Chief Financial Officer
The notes on pages 11 to 71 form an integral part of these consolidated financial statements. (7)
Consolidated statement of comprehensive income

For the year ended 31 December
2021 2020
Revenue 34 11,681,970 11,083,845
Operating expenses 26 (9,089,523) (8,253,903)

Expected credit losses (net off recoveries) (156,033) (227,353)
Other income 35 130,574 13,904
Federal royalty 27 (1,381,894) (1,511,938)
Finance income 28 27,560 50,575
Finance costs 28 (106,347) (105,859)
Impairment of goodwill 8 - (135,830)
Share of (loss)/profit of investments accounted for using
equity method 10 (5,563) 10,099
Gain on disposal of investment accounted for using
equity method 10.1 - 519,374
Profit for the year 1,100,744 1,442,914
Other comprehensive (loss)/income

Items that may be re‐classified subsequently
to profit or loss
Fair value changes on cash flow hedge 25 - (520)
Items that will not be re‐classified to profit or loss

Actuarial (loss)/gain on defined benefit obligations 20 (5,042) 19,451
Other comprehensive (loss)/income for the year (5,042) 18,931

Total comprehensive income for the year attributable
to shareholders of the Company 1,095,702 1,461,845
Basic and diluted earnings per share (AED) 29 0.24 0.32
Consolidated statement of changes in equity
Other
Share Share reserves Retained
capital premium (Note 25) earnings Total
AED 000 AED 000 AED 000 AED 000 AED 000
At 1 January 2020 4,532,906 232,332 1,764,640 2,118,877 8,648,755

Profit for the year - - - 1,442,914 1,442,914
Other comprehensive
(loss)/income - - (520) 19,451 18,931
Total comprehensive income for
the year - - (520) 1,462,365 1,461,845
Transfer to statutory reserve - - 144,291 (144,291) -

Final cash dividend paid - - - (951,910) (951,910)
Interim cash dividend paid - - - (589,278) (589,278)
At 31 December 2020 4,532,906 232,332 1,908,411 1,895,763 8,569,412
At 1 January 2021 4,532,906 232,332 1,908,411 1,895,763 8,569,412

Profit for the year - - - 1,100,744 1,100,744
Other comprehensive loss - - - (5,042) (5,042)
Total comprehensive income for
the year - - - 1,095,702 1,095,702
Transfer to statutory reserve - - 110,074 (110,074) -
Final cash dividend paid* - - - (679,936) (679,936)
Interim cash dividend paid** - - - (453,291) (453,291)
At 31 December 2021 4,532,906 232,332 2,018,485 1,748,164 8,531,887
*For the year 2020, a final cash dividend of AED 0.15 per share amounting to AED 679,936 thousand was approved
by the shareholders at the Annual General Meeting held on 25 March 2021 and paid on 21 April 2021.
**For the year 2021, an interim cash dividend of AED 0.10 per share amounting to AED 453,291 thousand was
paid on 24 August 2021.
For the year 2021, a final cash dividend of AED 0.11 per share amounting to AED 498,620 thousand is proposed.
Consolidated statement of cash flows

For the year ended 31 December
2021 2020
Cash flows from operating activities
Profit for the year 1,100,744 1,442,914
Adjustments for:
Depreciation and impairment of property, plant and equipment 6 1,473,014 1,346,997
Depreciation of right-of-use assets 7 367,607 362,409
Amortisation and impairment of intangible assets 8 184,623 181,018
Loss on disposal of property, plant and equipment and intangible 1,032
assets 142
Provision for employees’ end of service benefits 20 23,539 32,970
Release of provision for employees’ end of service benefits 20 (27,674) -
(Release)/loss allowance for inventory obsolescence 14 (8,574) 5,105
Loss allowances 30 178,118 254,102
Finance income 28 (27,560) (50,575)
Finance costs 28 106,347 105,859
Impairment of goodwill 8 - 135,830
Share of loss/(profit) of investments accounted for using equity
method 10 5,563 (10,099)
Gain on disposal of investment accounted for using equity
method 10.1 - (519,374)
Changes in working capital 30 1,184,794 1,425,151
Cash generated from operations 4,560,683 4,713,339
Royalty paid (net) 27 (1,507,186) (1,950,078)
Payment of employees’ end of service benefits 20 (22,350) (26,312)
Net cash generated from operating activities 3,031,147 2,736,949
Cash flows from investing activities

Purchase of property, plant and equipment (1,869,109) (1,834,580)
Purchase of intangible assets (129,064) (174,414)
Proceeds from disposal of property, plant and equipment and
intangible assets 826 126
Payment for additional investments accounted for using equity
method 10 - (31,000)
Proceeds from disposal of investment accounted for using equity
method - 800,000
Interest received 32,068 116,543
Margin on guarantees released - 1,535
Term deposits released (net) 655,000 919,374
Net cash used in investing activities (1,310,279) (202,416)
Cash flows from financing activities

Repayment of lease liabilities (251,850) (240,917)
Proceeds from borrowings 200,000 -
Payment of borrowings upfront fee (18,112) -
Repayment of borrowings - (716,332)
Dividends paid (1,133,227) (1,541,188)
Interest paid on lease liabilities (82,767) (86,454)
Interest paid others (6,907) (3,427)
Net cash used in financing activities (1,292,863) (2,588,318)
Net increase/(decrease) in cash and cash equivalents 428,005 (53,785)
Cash and cash equivalents at 1 January 210,872 264,657
Cash and cash equivalents at 31 December 17 638,877 210,872
Non-cash transactions are disclosed in Note 30 of the consolidated financial statements.
Notes to the consolidated financial statements

1 General information
Emirates Integrated Telecommunications Company PJSC the (“Company”) is a public joint stock company
with limited liability. The Company was incorporated according to Ministerial Resolution No. 479 of 2005
issued on 28 December 2005. The Company is registered in the commercial register under No. 77967. The
principal address of the Company is P.O Box 502666 Dubai, United Arab Emirates (UAE). These
consolidated financial statements for the year ended 31 December 2021 include the financial statements of
the Company and its subsidiaries (together “the Group”).
The Company’s principal objective is to provide fixed, mobile, wholesale, broadcasting and associated
telecommunication services in the UAE.
The Group has not made investments in any shares during the financial year ended 31 December 2021.
The Company has either directly or indirectly the following subsidiaries:

Country of
Subsidiaries Principal activities Shareholding incorporation
2021 2020
EITC Investment Holdings Holding investments in new business 100% 100% UAE
Limited i.e. content, media, data and value
added services for
telecommunications
Telco Operations FZ-LLC Outsourcing services 100% 100% UAE
Smart Dubai Platform Project Software development, IT 100% 100% UAE
Company LLC infrastructure, public networking and
computer systems housing services
EITC Singapore PTE. LTD. Telecommunications resellers/third 100% 100% Singapore
party telecommunications providers
(including value added network
services)
The Federal Decree-Law No. 26 of 2020 on the amendment of certain provisions of UAE Federal Law No.
2 of 2015 (“the Companies Law”) on Commercial Companies was issued on 27 September 2020 and became
effective on 2 January 2021. It requires companies to adjust their status in accordance with the provisions
by 2 January 2022. The Group has complied with the required changes in accordance with the provisions of
Federal Decree-Law No. 26 of 2020.
Federal Law No. 32 of 2021 concerning Commercial Companies (the “New Companies Law”) was issued
on 20 September 2021 to replace Federal Law No. 2 of 2015 on Commercial Companies, as amended (the
“2015 Law”) and came into force on 2 January 2022. The Group is in the process of reviewing the new
provisions and will apply the requirements thereof and adjust its affairs no later than one year from 2 January
2022.
(11)

for the year ended 31 December 2021 (continued)
2 Basis of preparation
The consolidated financial statements of the Group have been prepared in accordance with International
Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee
(IFRS IC) applicable to companies reporting under IFRS. The consolidated financial statements comply with
IFRS as issued by the International Accounting Standards Board (IASB). These consolidated financial
statements have been prepared under the historical cost convention except for financial asset at fair value
through other comprehensive income (FVOCI) that have been measured at fair value. The preparation of
consolidated financial statements in conformity with IFRS requires the use of certain critical accounting
estimates. It also requires management to exercise its judgement in the process of applying the Group’s
accounting policies.
(i) Functional and presentation currency

The individual financial statements of each of the Group’s subsidiaries, associates and joint venture are
presented in the currency of the primary economic environment in which they operate (its functional
currency). For the purpose of these consolidated financial statements, the results, financial position and
cash flows of each company are expressed in UAE Dirhams, which is the functional currency of the
Company, and the presentation currency of these consolidated financial statements.
(ii) Basis of consolidation

A subsidiary is an entity controlled by the Company. The financial statements of a subsidiary are included
in the consolidated financial statements from the date that control commences until the date that control
ceases.
(iii) Going concern

The directors have, at the time of approving the consolidated financial statements, a reasonable expectation
that the Group have adequate resources to continue in operational existence for the foreseeable future. Thus
they continue to adopt the going concern basis of accounting in preparing the consolidated financial
statements.
2.1 New standards, amendments and interpretations
(a) Amendment to standards and interpretations issued and effective during the financial year
beginning 1 January 2021.
 Interest Rate Benchmark Reform – Phase 2 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and
IFRS 16). The amendments introduce a practical expedient for modifications required by the
reform, clarify that hedge accounting is not discontinued solely because of the IBOR reform, and
introduce disclosures that allow users to understand the nature and extent of risks arising from the
IBOR reform to which the entity is exposed to and how the entity manages those risks as well as
the entity’s progress in transitioning from IBORs to alternative benchmark rates, and how the entity
is managing this transition.
(12)

2 Basis of preparation (continued)
2.1 New standards, amendments and interpretations (continued)
(b) New standards and amendments issued but not yet effective
 Classification of Liabilities as Current or Non-Current - amendments to IAS 1 (effective from

1 January 2023). The amendments aim to promote consistency in applying the requirements by
helping companies determine whether, in the statement of financial position, debt and other liabilities
with an uncertain settlement date should be classified as current (due or potentially due to be settled
within one year) or non-current;
 Reference to the Conceptual Framework - Amendments to IFRS 3 (effective from 1 January 2022).
The amendments update an outdated reference to the Conceptual Framework in IFRS 3 without
significantly changing the requirements in the standard;
 Property, Plant and Equipment - Proceeds before Intended Use - amendments to IAS 16 (effective
from 1 January 2022). The amendments prohibit deducting from the cost of an item of property, plant
and equipment any proceeds from selling items produced while bringing that asset to the location and
condition necessary for it to be capable of operating in the manner intended by management. Instead,
an entity recognises the proceeds from selling such items, and the cost of producing those items, in
profit or loss;
 Onerous Contracts - Cost of Fulfilling a Contract - amendments to IAS 37 (effective from 1 January
2022). The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate
directly to the contract’. Costs that relate directly to a contract can either be incremental costs of
fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that
relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge
for an item of property, plant and equipment used in fulfilling the contract);
 Annual Improvements to IFRSs 2018-2020 Cycle - Amendments to IFRS 1 First-time Adoption of
International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS 16 Leases and IAS
41 Agriculture;
 IFRS 17: Insurance Contracts (effective from 1 January 2023). IFRS 17 requires insurance liabilities
to be measured at a current fulfilment value and provides a more uniform measurement and
presentation approach for all insurance contracts. These requirements are designed to achieve the goal
of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4
Insurance Contracts as at January 1, 2023;
 Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates
and Joint Ventures (2011) relating to the treatment of the sale or contribution of assets from an
investor to its associate or joint venture. (Effective date deferred indefinitely. Adoption is still
permitted);
 Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2 (effective
from 1 January 2023). The amendments require that an entity discloses its material accounting
policies, instead of its significant accounting policies. Further amendments explain how an entity can
identify a material accounting policy. Examples of when an accounting policy is likely to be material
are added. To support the amendment, the Board has also developed guidance and examples to explain
and demonstrate the application of the ‘four-step materiality process’ described in IFRS Practice
Statement 2;
(13)

2.2 New standards, amendments and interpretations (continued)
(b) New standards and amendments issued but not yet effective
 Definition of Accounting Estimates - Amendments to IAS 8 (effective from 1 January 2023). The
amendments replace the definition of a change in accounting estimates with a definition of accounting
estimates. Under the new definition, accounting estimates are “monetary amounts in financial
statements that are subject to measurement uncertainty”. Entities develop accounting estimates if
accounting policies require items in financial statements to be measured in a way that involves
measurement uncertainty. The amendments clarify that a change in accounting estimate that results
from new information or new developments is not the correction of an error; and
 Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to IAS
12 (effective from 1 January 2023). The amendments clarify that the initial recognition exemption
does not apply to transactions in which equal amounts of deductible and taxable temporary differences
arise on initial recognition.
The above stated new standards and amendments are not expected to have any material impact on
consolidated financial statements of the Group.
There are no other applicable new standards and amendments to published standards or IFRIC
interpretations that have been issued and expected to have a material impact on the consolidated financial
statements of the Group.
2.2 Earnings per share
The Group presents basic earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by
dividing the profit attributable to the ordinary shareholders of the Company by the weighted average
number of ordinary shares outstanding during the year. Diluted EPS is calculated by adjusting the weighted
average number of equity shares outstanding for the dilutive effects of potential ordinary shares.
The Group does not have any dilutive potential ordinary shares.
2.3 Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, the management is required to make judgements,
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent
from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and future periods if the revision affects both current and future periods.
(14)


2.3 Critical accounting judgements and key sources of estimation uncertainty (continued)
The key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are disclosed below:
Critical accounting judgements
(i) Asset retirement obligations
The Group exercises judgement in determining the expected cash outflows related to its asset retirement
obligations. Judgement is necessary in determining the timing of outflow as well as quantifying the possible
range of the financial settlements that may occur.
The present value of the Group’s provision is based on management’s best estimate of the future cash
outflows required to settle the obligations, discounted using appropriate discount rate. Additional
information on this provision is disclosed in Note 21.
(ii) Federal royalty

The computation of Federal Royalty in accordance with the Cabinet of Ministers of UAE decision No.
320/15/23 of 2012 and various guidelines issued by the UAE Ministry of Finance (“the MoF”) and
subsequent clarification letters require use of certain judgements, interpretations and assumptions. These
guidelines mainly relate to the segregation of items between regulated and non-regulated and items which
the Group judges as not subject to Federal Royalty or which may be set off against revenue which are
subject to Federal Royalty, and allocation of costs between regulated and non-regulated results.
(iii) Allocation of the transaction price
Products with multiple deliverables that have value to customers on a stand-alone basis are defined as
multiple element arrangements. The transaction price for these contracts is allocated to the performance
obligations on a relative stand-alone selling price basis.
Management estimates the stand-alone selling price at contract inception based on observable prices of the
type of goods to be provided and the services rendered in similar circumstances to similar customers. If a
discount is granted, it is allocated to both performance obligations based on their relative stand-alone selling
prices. Where the stand-alone selling prices are not directly observable, they are estimated based on
expected cost plus margin.
(iv) Determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods
after termination options) are only included in the lease term if the lease is reasonably certain to be extended
(or not terminated). The assessment is reviewed if a significant event or a significant change in
circumstances occurs which affects this assessment and that is within the control of the lessee.
(15)

Key sources of estimation uncertainty
(i) Provision for expected credit losses of contract assets, trade receivables and due from related
parties
The Group recognises a loss allowance for expected credit losses (ECL) on its contract assets, trade
receivables and due from related parties. The amount of expected credit losses is updated at the end of each
reporting period to reflect changes in credit risk since initial recognition of the respective financial asset.
The Group recognises lifetime ECL for contract assets, trade receivables and due from related parties, using
the simplified approach. The expected credit losses on these financial assets are estimated using a provision
matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the
debtors, general economic conditions and an assessment of both the current as well as the forecast direction
of conditions at the reporting date.
For financial assets other than contract assets, trade receivables and due from related parties, the Group will
calculate ECL using the general approach.
(ii) Provision for impairment of other financial assets
For all other financial assets, the Group recognises lifetime ECL when there has been a significant increase
in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has
not increased significantly since initial recognition, the Group measures the loss allowance for that financial
instrument at an amount equal to 12 months ECL. The assessment of whether lifetime ECL should be
recognised is based on significant increase in the likelihood or risk of a default occurring since initial
recognition instead of evidence of a financial asset being credit-impaired at the end of the reporting period
or an actual default occurring.
(iii) Impairment of goodwill
The Group tests goodwill for impairment on an annual basis, in accordance with the accounting policy. The
recoverable amount of the cash-generating units has been determined based on value-in-use calculations.
The cash flows are derived from the budget for the next five years and do not include restructuring activities
that the Group is not yet committed to or significant future investments that will enhance the asset base of
the cash generating units being tested, but do include the Group’s expectations of future capital expenditure
necessary to maintain the Group’s network existing operations.
These calculations are performed internally by the Group and require the use of estimates and assumptions.
The input factors most sensitive to change are management estimates of future cash flows based on budgets,
growth rates and discount rate. Further detail on these assumptions has been disclosed in Note 8. The
sensitivity analysis in respect of recoverable amount of the CGUs is prescribed in Note 8 to the consolidated
financial statements.
(16)

Key sources of estimation uncertainty (continued)
(iv) Useful lives of property, plant and equipment
Property, plant and equipment represent a significant proportion of the Group’s asset base. Therefore, the
judgements made in determining their estimated useful lives and residual values are critical to the Group’s
financial position and performance. Useful lives and residual values are reviewed on an annual basis with
the effects of any changes in estimates accounted for on a prospective basis.
In determining residual values, the Group uses historical sales and management’s best estimate based on
market prices of similar items. Useful lives of property, plant and equipment are based on management
estimates and take into account historical experience with similar assets, the expected usage of the asset,
physical wear and tear, technical or commercial obsolescence and legal restrictions on the use of the assets.
The useful lives of the property, plant and equipment are provided in Note 3.2.
(v) Discounting of lease payments
The lease payments are discounted using the Group’s incremental borrowing rate (“IBR”). For calculation
of IBR, the Group has taken the 12 months LIBOR as on the transition date and the rate is adjusted for
Group’s specific risk, term risk and underlying asset risk.
(vi) Impairment of property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets are assessed for impairment based on assessment of
cash flows on individual cash generating units when there is indication of impairment. Management did not
identify any impairment indicators in the current or prior year for individual cash generating units.
However, management identified certain individual items of property, plant and equipment and intangible
assets for which future economic benefit is not expected and, accordingly, recorded an impairment in Notes
6 and 8.
2.4 COVID-19 updates
In January 2020, the World Health Organization (“WHO”) announced a global health emergency because
of a new strain of coronavirus originating in Wuhan, China (the “COVID-19”). In March 2020, the WHO
classified COVID-19 as a pandemic based on the rapid increase in exposure and infections across the world.
The pandemic nature of this virus resulted in global travel restrictions and several partial or total lockdowns
in most countries.
(17)

2.4 COVID-19 updates (continued)
In Q3-2021, the overall situation regarding new infections improved in the UAE. The vaccination
campaigns initiated at the end of 2020 were massively deployed with significant percentage of the eligible
population being vaccinated. The vaccination drive around the world has been also gaining momentum and
is helping in containing the impact of Covid-19. This resulted in gradual relaxation of travel restrictions
with several countries and a start of normalisation of the activity in UAE at the end of Q3.
In Q4-2021, with the emergence of Omicron variant, some restrictions were re-imposed. However, early
findings indicate that the impact of this new variant is lower than previous ones. The Group continues
monitoring the evolution of the situation and adjust its operations in a dynamic manner to cope with an
acceleration or a deceleration of the recovery.
From accounting perspective, the Group continued to assess the Expected Credit Loss (ECL) from trade
receivables and contract assets and accounted for such in the consolidated financial statements in
accordance with the requirements of IFRS 9. The Group also assessed the potential impacts of the current
situation across all relevant areas of the business including the ones related to going concern, impairment
of assets and inventory, impairment of goodwill, onerous contract assessment and subsidiary accounting,
with no material impact noted.
3 Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are
set out below:
3.1 Consolidation
(a) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group
controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are
deconsolidated from the date that control ceases.
The Group applies the acquisition method to account for business combinations. The consideration
transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities
incurred to the former owners of the acquiree and the equity interests issued by the Group.
(18)

3 Summary of significant accounting policies (continued)
3.1 Consolidation (continued)
(a) Subsidiaries (continued)
The consideration transferred includes the fair value of any asset or liability resulting from a contingent
consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in
a business combination are measured initially at their fair values at the acquisition date. The Group
recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair
value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s
identifiable net assets.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s
previously held equity interest in the acquiree is re-measured to fair value at the acquisition date; any gains
or losses arising from such re-measurement are recognised in consolidated statement of comprehensive
income.
Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition
date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or
liability is recognised in accordance with IFRS 9 either in consolidated statement of comprehensive income
or as a change to other comprehensive income. Contingent consideration that is classified as equity is not
re-measured, and its subsequent settlement is accounted for within equity.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment
of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Group.
(b) Changes in ownership interests in subsidiaries without change of control
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control
over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests
and the non-controlling interests are adjusted to reflect the changes in their relative interests in the
subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and
the fair value of the consideration paid or received is recognised directly in equity and attributed to the
Owners of the Group.
When the Group loses control of a subsidiary, a gain or loss is recognised in statement of comprehensive
income and is calculated as the difference between (i) the aggregate of the fair value of the consideration
received and the fair value of any retained interest and (ii) the previous carrying amount of the assets
(including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts
previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if
the Group had directly disposed of the related assets or liabilities of the subsidiary.
The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded
as the initial carrying amount for the purposes of subsequent accounting for the retained interest as an
investment in an associate or a joint venture or financial asset.
(19)


3.2 Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and impairment.
Historical cost includes expenditure that is directly attributable to the acquisition of the assets. Subsequent
costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced. All other repairs and maintenance expenses are charged to
the consolidated statement of comprehensive income during the financial year in which they are incurred.
Depreciation is calculated using the straight-line method to allocate their cost or revalued amounts to their
residual values over their estimated useful lives, as follows:
Years
Buildings 25
Plant and equipment
Network civil works/buildings 10-25
Infrastructure 3-25
IT hardware 3-10
Mobile network 8-10
Fixed network 2-10
Broadcasting 5-7
Furniture and fixtures 3-5
Motor vehicles 4
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the
asset’s carrying amount is greater than its estimated recoverable amount (Note 3.17.2).
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are
recognised within “other income” in the consolidated statement of comprehensive income.
Capital work in progress includes assets which are under construction or inspection pending certification
for their intended use and are stated at cost net of any accumulated impairment losses. When available for
use, capital work in progress is transferred to property, plant and equipment and depreciated in accordance
with the Group’s policies. No depreciation is charged on such assets until available for use.
3.3 Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases. The Group recognises
lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying
assets.
(20)

3.3 Leases (continued)
Group as a lessee (continued)
i) Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of
right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less any lease incentives received. Right-of-use assets
are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of
the assets, as follows:
Year
Land and building 2-25

Furniture and fixtures 8-13
Motor vehicle 2
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
Right-of-use assets are assessed for impairment annually as per non-financial assets impairment policy
given in Note 3.17.2.
ii) Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including
in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on
an index or a rate. The lease payments also include the exercise price of a purchase option reasonably
certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term
reflects the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they
are incurred to produce inventories) in the period in which the event or condition that triggers the payment
occurs. In calculating the present value of lease payments, the Group uses its incremental borrowing rate
at the lease commencement date because the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to determine such lease payments) or a change
in the assessment of an option to purchase the underlying asset.
(21)

3.3 Leases (continued)
Group as a lessor
The Group also enters into lease agreements as a lessor. Leases for which the Group is a lessor are classified
as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified
as operating leases.
When the Group is an intermediate lessor, it accounts for the head lease and the sub-lease as two separate
contracts. The sub-lease is classified as a finance or operating lease by reference to the right-of-use asset
arising from the head lease.
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying
amount of the leased asset and recognised on a straight-line basis over the lease term.
Amounts due from lessees under finance leases are recognised as lease receivables at the amount of the
Group’s net investment in the leases. Finance lease income is allocated to accounting periods so as to
reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases.
Subsequent to initial recognition, the Group regularly reviews the estimated unguaranteed residual value
and applies the impairment requirements of IFRS 9, recognising an allowance for expected credit losses
on the lease receivables.
Finance lease income is calculated with reference to the gross carrying amount of the lease receivables,
except for credit-impaired financial assets for which interest income is calculated with reference to their
amortised cost (i.e. after a deduction of the loss allowance).
When a contract includes both lease and non-lease components, the Group applies IFRS 15 to allocate the
consideration under the contract to each component.
3.4 Intangible assets
Goodwill
Goodwill arises on the acquisition of subsidiaries or businesses and represents the excess of the
consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-
date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets
acquired.
If the total of consideration transferred, non-controlling interest recognised and previously held interest
measured at fair value is less than the fair value of the net assets of the subsidiary acquiree, in the case of
a bargain purchase, the difference is recognised directly in the consolidated statement of comprehensive
income. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash inflows which are largely independent of the cash inflows from other assets
or groups of assets (cash-generating units). Each unit or group of units to which the goodwill is allocated
represents the lowest level within the Group at which the goodwill is monitored for internal management
purposes. Goodwill is monitored at the operating segment level.
(22)

3.4 Intangible assets (continued)
Goodwill (continued)
Goodwill impairment reviews are undertaken annually or more frequently if events or changes in
circumstances indicate a potential impairment. The carrying value of the Cash Generating Units (CGUs)
containing the goodwill is compared to the recoverable amount, which is the higher of value in use and the
fair value less costs of disposal. Any impairment is recognised immediately as an expense and is not
subsequently reversed.
Licenses and indefeasible rights of use
Separately acquired licenses and rights of use are shown at historical cost. Licenses and rights of use
acquired in a business combination are recognised at fair value at the acquisition date. Licenses and rights
of use have a finite useful life and are carried at cost less accumulated amortisation. Amortisation is
calculated using the straight-line method to allocate the cost of licenses and rights of use over their
estimated useful lives as shown below:
Years
Telecommunications license fee 20
Indefeasible rights of use 10-15
Computer software
Acquired computer software are capitalised on the basis of the costs incurred to acquire and bring to use
the specific software. These costs are amortised over their estimated useful lives of five years. Costs
associated with maintaining computer software programmes are recognised as an expense as incurred.
Capital work in progress includes assets which are under development or inspection pending certification
for their intended use and are stated at cost net of any accumulated impairment losses. When available for
use, capital work in progress is transferred to software in use and amortised in accordance with the Group’s
policies. No amortisation is charged on such assets until available for use.
Derecognition of intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from
use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference
between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss
when the asset is derecognised.
3.5 Associates and joint venture
An associate is an entity over which the Group has significant influence. Significant influence is the power
to participate in the financial and operating policy decisions of the investee, but is not control or joint
control over those policies. A joint venture is a type of joint arrangement whereby the parties that have
joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.
(23)

3.5 Associates and joint venture (continued)
The considerations made in determining significant influence or joint control are similar to those necessary
to determine control over subsidiaries. The Group’s investment in its associate and joint venture are
accounted for using the equity method.
Under the equity method, the investment in an associate or a joint venture is initially recognised at cost.
The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets
of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture
is included in the carrying amount of the investment and is not tested for impairment separately.
The statement of profit or loss reflects the Group’s share of the results of operations of the associate or
joint venture. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition,
when there has been a change recognised directly in the equity of the associate or joint venture, the Group
recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised
gains and losses resulting from transactions between the Group and the associate or joint venture are
eliminated to the extent of the interest in the associate or joint venture.
The aggregate of the Group’s share of profit or loss of an associate and a joint venture is shown on the face
of the consolidated statement of comprehensive income outside operating profit and represents profit or
loss after tax and non-controlling interests in the subsidiaries of the associate or joint venture.
The financial statements of the associate or joint venture are prepared for the same reporting period as the
Group. When necessary, adjustments are made to bring the accounting policies in line with those of the
Group.
After application of the equity method, the Group determines whether it is necessary to recognise an
impairment loss on its investment in its associate or joint venture. At each reporting date, the Group
determines whether there is objective evidence that the investment in the associate or joint venture is
impaired. If there is such evidence, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate or joint venture and its carrying value, and then recognises
the loss as ‘Share of profit of investments accounted for using equity method’ in the statement of profit or
loss.
Upon loss of significant influence over the associate or joint control over the joint venture, the Group
measures and recognises any retained investment at its fair value. Any difference between the carrying
amount of the associate or joint venture upon loss of significant influence or joint control and the fair value
of the retained investment and proceeds from disposal is recognised in profit or loss.
3.6 Inventories
Inventories are measured at the lower of cost and net realisable value. Cost comprises direct materials and
where applicable, directs labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition. It excludes borrowing costs. Allowance is made, where
appropriate, for deterioration and obsolescence. Cost is determined in accordance with the weighted
average cost method. Net realisable value represents the estimated selling price less all estimated costs of
completion and costs to be incurred in marketing, selling and distribution.
(24)

3.7 Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer.
If the Group perform by transferring goods or services to a customer before the customer pays consideration
or before payment is due, a contract asset is recognised for the earned consideration.
Contract assets also include subscriber acquisition costs (contract costs). These are incremental contract
costs incurred to obtain and fulfil a contract to provide goods or services to the customer, which the Group
opted to capitalise and these costs are expected to be recovered. These costs are being amortised and tested
for impairment regularly. Contract costs is being amortised over the average customer life with the Group
for each segment. Contract assets are recognised initially at fair value and subsequently measured at
amortised cost using effective interest rate method, less provision for impairment.
3.8 Trade and other receivables
Trade and other receivables are amounts due from customers for goods sold or services performed in the
ordinary course of business. If the contractual collection date is in one year or less, they are classified as
current assets. If not, they are presented as non-current assets. Trade receivables are recognised initially at
fair value and subsequently measured at amortised cost using effective interest rate method, less provision
for impairment.
3.9 Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Group has
received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Group transfers goods or services to the customer, a contract liability is recognised
when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised
as revenue when the Group performs under the contract.
3.10 Cash and bank balances
Cash and bank balances comprise cash balances and call deposits with original maturities of three months
or less. Bank overdrafts, if any that are repayable on demand and form an integral part of the Group’s cash
management are included as a component of cash and cash equivalents for the purpose of the consolidated
statement of cash flows.
(25)

3.11 Financial instruments
3.11.1 Non-derivative financial assets
Classification, initial recognition and measurement
The Group classifies its financial assets as financial assets measured at amortised costs and financial assets
at fair value through other comprehensive income (FVOCI). The classification of financial assets at initial
recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business
model for managing them. With the exception of trade receivables that do not contain a significant
financing component or for which the Group has applied the practical expedient, the Group initially
measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or
for which the Group has applied the practical expedient are measured at the transaction price determined
under IFRS 15. For investments in equity instruments that are not held for trading, this will depend on
whether the Group has made an irrevocable election at the time of initial recognition to account for the
equity investment at FVOCI.
(a) Financial assets measured at amortised cost
Financial assets measured at amortised cost applies to instruments for which the Group has a business
model to hold the financial asset to collect the contractual cash flows. The characteristics of the contractual
cash flows are that of solely payments of the principal amount and interest (referred to as solely payments
of principal and interest “SPPI”).
 Principal is the fair value of the instrument at initial recognition;

 Interest is the return within a basic lending arrangement and typically consists of consideration for the
time value of money, and credit risk. It may also include consideration for other basic lending risks
such as liquidity risk as well as a profit margin.
Financial assets measured at amortised costs are included in current assets, except for maturities greater
than 12 months after the end of the reporting period which are then classified as non-current assets. The
Group’s financial assets measured at amortised costs comprise trade and other receivables, contract assets,
due from related parties, term deposits and cash and bank balances in the consolidated statement of
financial position.
(b) Financial assets at fair value through other comprehensive income (FVOCI)
FVOCI is the classification for instruments for which Group has a dual business model, i.e. the business
model is achieved by both holding the financial asset to collect the contractual cash flows and through the
sale of the financial assets. The characteristics of the contractual cash flows of instruments in this category,
must still be solely payments of principal and interest. They are included in non-current financial assets
unless the investment matures or management intends to dispose of it within 12 months of the end of the
reporting period. The Group elected to classify irrevocably its non-listed equity investments under this
category.
(26)

3.11 Financial instruments (continued)
3.11.1 Non-derivative financial assets (continued)
(b) Financial assets at fair value through other comprehensive income (FVOCI) (continued)
Subsequent measurement
Financial assets measured at amortised cost
Financial assets measured at amortised cost are subsequently measured using the effective interest (EIR)
method and are subject to impairment. Gains and losses are recognised in consolidated statement of
comprehensive income when the asset is derecognised, modified or impaired.
Financial assets at fair value through other comprehensive income (FVOCI)
Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at FVOCI when they meet the definition of equity under IAS 32 Financial
Instruments: Presentation and are not held for trading. The classification is determined on an instrument-
by-instrument basis.
Gains and losses on these equity instruments are not subsequently reclassified to profit or loss following
its derecognition. Dividends are recognised as other income in the statement of comprehensive income
when the right of payment has been established, except when the Group benefits from such proceeds as a
recovery of part of the cost of the equity instruments, in which case, such gains are recorded in OCI.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not
reported separately from other changes in fair value.
3.11.2 Non-derivative financial liabilities
The Group non-derivative financial liabilities include borrowings, due to related parties and trade and other
payables in the consolidated statement of financial position.
Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition these financial liabilities are measured at amortised cost using the
effective interest rate method. The Group derecognises a financial liability when its contractual obligations
are discharged or cancelled or expired.
3.11.3 Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount reported in the consolidated statement of
financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities
simultaneously.
(27)

3.12 Share capital
Ordinary shares are classified as equity.
3.13 Dividend on ordinary shares
Dividends payable on ordinary shares are recognised as a liability in the period in which they are approved
by the Group’s shareholders.
3.14 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course
of business from suppliers. Trade payables are classified as current liabilities if payment is due within one
year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-
current liabilities. Trade payables are recognised initially at fair value and subsequently measured at
amortised cost using the effective interest rate method.
3.15 Provisions
Provisions are recognised when the Group has a legal or constructive obligation as a result of a past event,
it is probable that an outflow of resources will be required to settle the obligation, and the amount can be
reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised even
if the likelihood of an outflow with respect to any one item included in the same class of obligations may
be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-
tax rate that reflects current market assessments of the time value of money and the risks specific to the
obligation. The increase in provision due to the passage of time is recognised as finance costs in the
consolidated statement of comprehensive income.
Asset retirement obligations
This provision relates to the estimate of the cost of dismantling and removing an item of property, plant and
equipment and restoring the site on which the item was located to its original condition. The Group provides
for the anticipated costs associated with the restoration of leasehold property to its original condition at
inception of the lease, including removal of items included in plant and equipment.
(28)

3.16 Employee benefits
Payments made to state-managed pension schemes are dealt with as payments to defined contribution
schemes where the Group’s obligations under the schemes are equivalent to those arising in a defined
contribution scheme. Accordingly, the accrued cost of contribution is charged to the consolidated statement
of comprehensive income as incurred.
Provision for employees’ end of service benefits for non-UAE nationals is made in accordance with UAE
Labour Law. The provision is calculated in accordance with the Projected Unit Credit method as per IAS 19
‘Employee Benefits’ taking into consideration the UAE Labour Laws.
The present value of the defined benefit obligations is calculated using assumptions on the average annual
rate of increase in salaries, average period of employment of non-UAE nationals and an appropriate discount
rate. The assumptions used are calculated on a consistent basis for each period and reflect management’s best
estimate.
The net interest cost is calculated by applying the discount rate to the defined benefit obligation. This cost is
included in finance costs in the consolidated statement of comprehensive income.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions
are recognised in the period in which they occur, directly in other comprehensive income. They are included
in retained earnings in the consolidated statement of changes in equity and in the consolidated statement of
financial position.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments
are recognised immediately in profit or loss as past service costs.
Payments to defined contribution schemes are charged as an expense as they fall due. Payments made to
state-managed pension schemes are dealt with as payments to defined contribution schemes where the
Group’s obligations under the schemes are equivalent to those arising in a defined contribution scheme.
Provision is also made for the estimated liability for employees' unused entitlements to annual leave and
flights as a result of services rendered by eligible employees up to the reporting date. The provision relating
to annual leave and air passage is disclosed as a current liability, while that relating to end of service benefits
is disclosed as a non-current liability.
The Group also provides discount on mobile and fixed line charges to employees for official and personal
purposes. This benefit is not separately accounted for as staff costs.
(29)

3.17 Impairment
3.17.1 Financial assets
The Group recognises a loss allowance for expected credit losses on financial assets measured at amortised
cost. The amount of expected credit losses is updated at the end of each reporting period to reflect changes
in credit risk since initial recognition of the respective financial instrument.
The Group recognises lifetime ECL for trade receivables and contract assets, using the simplified approach.
The expected credit losses on these financial assets are estimated using a provision matrix based on the
Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general
economic conditions and an assessment of both the current as well as the forecast direction of general
economic conditions at the reporting date.
(a) Approach selected for measurement lifetime ECL
Simplified approach - The Group is measuring the impairment at an amount equal to lifetime expected
credit losses (ECL) for trade receivables, due from related parties and contract assets.
(b) Measurement of lifetime ECL on trade receivables and contract assets
The Group evaluates the expected credit loss for its trade receivables and contract assets based on debt
flow rates for various customer segments i.e. enterprise, consumer, etc. Debt flow rates are calculated based
on experience and historical collections trends, adjusted with forward looking collection factors.
Periodic impairment losses based on the above debt flow rates are adjusted against security deposit and
any other legally binding offsets at customer level. Provision for impairment is also taken on unbilled
receivables based on the applicable rate.
In addition, an allowance for impairment loss may be considered for a financial asset on case to case basis
based on specific information, company risk profile, market conditions and any other relevant information.
(c) Measurement of lifetime expected credit losses on term deposits and bank balances
Impairment for terms deposits and bank balances is based on probability of default, calculated on the basis
of ratings provided by credit rating agencies (e.g. Fitch, Moody’s, etc.) of each bank and Loss Given
Default (LGD) driven by rating from reputable financial institutions.
For all other financial assets, the Group recognises lifetime ECL when there has been a significant increase
in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has
not increased significantly since initial recognition, the Group measures the loss allowance for that
financial instrument at an amount equal to 12 months ECL. The assessment of whether lifetime ECL should
be recognised is based on significant increase in the likelihood or risk of a default occurring since initial
recognition instead of evidence of a financial asset being credit-impaired at the end of the reporting period
or an actual default occurring.
(30)

3.17 Impairment (continued)
3.17.2 Non-financial assets
Intangible assets that have an indefinite useful life or intangible assets/property, plant and equipment
(including capital work in progress) not ready to use are not subject to amortisation/depreciation and are
tested annually for impairment. Assets that are subject to amortisation/depreciation are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal
and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are largely
independent cash inflows (CGUs’). Prior impairments of non-financial assets (other than goodwill) are
reviewed for possible reversal at each reporting date.
3.18 Foreign currency translation
(a) Functional and presentation currency
Items included in the consolidated financial statements are measured using the currency of the primary
economic environment in which the Group operates (‘the functional currency’). The consolidated financial
statements are presented in AED which is the Company’s and its subsidiaries functional and presentation
currency. The figures have been rounded to the nearest thousand except when otherwise stated.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies
are recognised in the consolidated statement of comprehensive income within finance income or costs.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s
foreign operations are translated at exchange rates prevailing on the reporting date. Income and expense
items are translated at the average exchange rates for the period, unless exchange rates fluctuate
significantly during that period, in which case the exchange rates at the date of transactions are used.
Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in a
foreign exchange translation reserve. Since the presentation currency of the Group and its subsidiaries AED
or USD which is pegged to AED, there is no foreign currency translation reserve at reporting date.
3.19 Revenue recognition
IFRS 15 Revenue from Contracts with Customers, established a single comprehensive model for entities
to use in accounting for revenue arising from contracts with customers.
(31)

3.19 Revenue recognition (continued)
The core principle of IFRS 15 is that an entity should recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to
be entitled in exchange for those goods or services.
The standard introduces a 5-step approach to revenue recognition:
Step 1: Identify the contract(s) with a customer;

Step 2: Identify the performance obligations in the contract;
Step 3: Determine the transaction price;
Step 4: Allocate the transaction price to the performance obligations in the contract; and
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation.
Revenue comprises the invoiced or accrued amounts from the sale of goods and services
(telecommunication and others) in the ordinary course of the Group’s activities. Revenue is shown net of
returns, discounts and rebates allowed.
Revenue recognition policies for product and services of the Group based on IFRS 15 guidelines are given
below:
Revenue from telecommunication services comprise amounts charged to customers in respect of monthly
access charges, airtime usage, messaging, the provision of other mobile telecommunications services,
including data services and information provision and fees for connecting fixed line and mobile users to
the Group’s network. The Group recognises revenue, as mobile/telecommunication services are provided.
Products with multiple deliverables that have value to a customer on stand-alone basis are defined as
multiple element arrangements. Contracts typically include the sale of equipment, subscriber identification
module (SIM) card and a service package which mainly include voice, data, SMS/MMS, VAS or other
services. These arrangements are divided into separate performance obligations. Where the contracts
include multiple performance obligations, the transaction price will be allocated to each performance
obligation based on the stand-alone selling prices. Where these are not directly observable, they are
estimated based on expected cost plus margin. Revenue recognition for voice, data, SMS/MMS, VAS or
other services is over the period when these services are provided to the customers.
Revenue from sale of stand-alone handsets under separate contract is recognised when the handset is
delivered to the end customer and control has been transferred.
Revenue from the sale of prepaid credit is recognised on the actual utilisation of the prepaid credit. Unused
prepaid credit is deferred as contract liability until such time as the customer uses the credit, expires or
becomes unutilised. Unused prepaid vouchers are recognised as revenue on expiry of 24 months.
Revenue from sale of SIM cards is recognised on the date of activation of SIM.
(32)

Contract revenue, i.e. certain revenue from managed services provided by the Group, is recognised over
time based on the cost-to cost method, i.e. based on the proportion of contract costs incurred for work
performed to date relative to the estimated total contract costs. This input method is considered as an
appropriate measure of the progress towards complete satisfaction of these performance obligations under
IFRS 15.
Revenue from interconnection of voice and data traffic with other telecommunications operators is
recognised at the time the services are performed based on the actual recorded traffic.
When the Group sells goods or services as a principal, revenue from customers and payments to suppliers
are reported on a gross basis in revenue and operating expenses. If the Group sells goods or services as an
agent, revenue and payments to suppliers are recorded in revenue on a net basis, representing the margin
earned.
The Group operates loyalty programmes where customers accumulate points for purchases made, which
entitle them to discounts on future purchases. The reward points are recognised as a separately identifiable
component of the initial sale transaction by allocating the fair value of the consideration received between
the reward points and the other components of the sale such that the reward points are initially recognised
as contract liabilities at their fair value. Revenue from the reward points is recognised when the points are
redeemed. Breakage (forfeiture of points) is recognised when redemption becomes remote.
Variable Consideration
Certain customer contracts include variable discounts, rebates, refunds, credits, and incentives etc, which
are provided to the customers during the contract period. Variability arises due to contractual terms and
conditions, whereby customers are provided discounts/rebates/incentives etc upon reaching certain volume
thresholds. Under IFRS 15, if consideration promised in the contract (either explicit or implicit) includes a
variable amount, then the Group should estimate the amount and adjust the total transaction price at
contract inception. The Group has certain interconnect and roaming contracts which contain such variable
considerations, which are estimated by using the most likely amount method. Variable consideration
adjusted to the transaction price at contract inception.
Contract Modification
Contract modifications exist when the parties to the contract approve a modification that creates or changes
the enforceable rights and obligations of the parties to the contract.
A modification is accounted for as either a separate contract (Accounted for prospectively) or as part of the
existing contract (accounted through a cumulative catch-up adjustment). This assessment is to be based on
whether:
(a) the modification adds distinct goods and services and

(b) the distinct goods and services are priced at their stand-alone selling prices.
(33)

Contract Modification (continued)
If the modification results only in a change in price of the contract, then that change is allocated to separate
performance obligations under the contract on the same basis as at contract inception including the satisfied
performance obligations at the date of modification. This will result in a cumulative catchup adjustment to
revenue.
If the modification results in change in scope of the contract adding distinct goods or services at a price
reflecting their stand-alone selling price the contract is accounted for as a new contract till the end of the
contract term.
Significant financing component
Significant financing component exists if the timing of payments agreed to by the parties to the contract
(either explicitly or implicitly) provides the customer or the Group with a significant benefit of financing
the transfer of goods or services to the customer. In such circumstances, the contract contains a significant
financing component.
Currently, in the case of handsets instalment products (bundled and stand-alone) with periods exceeding
one year, since the list price, cash selling price and the promised consideration are significantly equal, the
Group has assessed that financing component does not exist. In principle, the Group considers any price
difference above 5% as significant in making necessary accounting based on the practical expediency.
However, if there are any changes in products structure indicating the existence of a financing component,
above 5%-6% of the stand-alone selling price of the products will be considered significant and accounted
for accordingly.
3.20 Commission to intermediaries
Intermediaries are paid commissions by the Group mainly in return for selling recharge credits. Such
commissions are recognised in consolidated statement of comprehensive income in the same period of
services provided.
3.21 Recognition of finance income and costs
Finance income comprises interest income on short term investments and other bank deposits. Interest
income is recognised as it accrues in consolidated statement of comprehensive income, using the effective
interest rate method.
Finance costs is mainly interest payable on borrowing facilities obtained from financial institutions at
normal commercial rates, amortisation of loan arrangement fees, interest on lease liabilities, interest on
employees’ end of service benefits, interest on asset retirement obligations and is recognised as an expense
in the consolidated statement of comprehensive income in the period in which it is incurred.
(34)

3.22 Cash dividend distribution to equity holders of the parent
The Group recognises a liability to make cash distributions to equity holders when the distribution is
authorised and the distribution is no longer at the discretion of the Company. As per the UAE Federal Law
No. 2 of 2015 (as amended), a distribution is authorised when it is approved by the shareholders. A
corresponding amount is recognised directly in equity.
3.23 Segmental information
Information regarding the Group’s operating segments is reported in accordance with IFRS 8 Operating
Segments. IFRS 8 requires operating segments to be identified on the basis of internal reports that are
regularly reviewed by the Group’s chief operating decision maker and used to allocate resources to the
segments and to assess their performance.
3.24 Government grants
Government grants relating to non-monetary assets are recognised at nominal value. Grants that
compensate the Group for expenses are recognised in the consolidated statement of comprehensive income
on a systematic basis in the same period in which the expenses are recognised. Grants that compensate the
Group for the cost of an asset are recognised in the consolidated statement of comprehensive income on a
systematic basis over the expected useful life of the related asset upon capitalisation.
4 Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value, for
both financial and non-financial assets and liabilities. Fair values have been determined for measurement
and/or disclosure purposes, based on the following methods.
4.1 Contract assets
The fair value of contract assets are estimated as the present value of future cash flows, discounted at the
market rate of interest at the reporting date where applicable.
4.2 Non-derivative financial liabilities
Fair value, which is determined for disclosure purposes, is calculated based on the present value of future
principal and interest cash flows, discounted at the market rate of interest at the reporting date.
(35)

5 Financial risk management
5.1 Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, cash
flow and fair value interest rate risks and price risk), credit risk and liquidity risk. The Group’s overall risk
management process focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the Group’s financial performance.
This note presents information about the Group’s exposure to each of the above risks, the Group’s
objectives, policies and processes for measuring and managing risk, and the Group’s management of
capital. Further quantitative disclosures are included throughout these consolidated financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk
management framework. The Board is responsible for developing and monitoring the Group’s risk
management policies.
The Group’s risk management policies are established to identify and analyse the risks faced by the Group,
to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s
activities. The Group, through its training and management standards and procedures, aims to develop a
disciplined and constructive control environment in which all employees understand their roles and
obligations.
The Group’s Audit Committee oversees how management monitors compliance with the Group’s risk
management policies and procedures and reviews the adequacy of the risk management framework in
relation to the risks faced by the Group. The Audit Committee is assisted in its oversight role by Internal
Audit department. Internal Audit department undertakes both regular and adhoc reviews of risk
management controls and procedures, the results of which are reported to the Audit Committee.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Group’s receivables from
customers.
Trade receivables, contract assets and due from related parties
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer
and the extent to which credit terms are offered.
The management has established a credit policy under which each new customer is analysed for
creditworthiness before credit terms are offered. The Group’s review can include external ratings, when
available, customer segmentation, and in some cases bank references. Credit limits are established for each
customer in accordance with this policy, which represents the maximum open amount without requiring
approval from senior management. These limits are reviewed periodically.
(36)

5 Financial risk management (continued)
5.1 Financial risk factors (continued)
(a) Credit risk (continued)
Trade receivables, contract assets and due from related parties (continued)
In monitoring customer credit risk, customers are classified according to their credit characteristics,
including whether they are an individual or legal entity, projected business volumes, new or established
businesses and existence of previous financial relationships with the Group.
The Group may require deposit or collateral in respect of granting credit for trade and other receivables,
subject to results of risk assessment and the nature and volumes contemplated by the customer.
The Group recognises lifetime ECL for trade receivables, contract assets and due from related parties, using
the simplified approach. The expected credit losses on these financial assets are estimated using a provision
matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the
debtors, general economic conditions and an assessment of both the current as well as the forecast direction
of conditions at the reporting date. All individually significant assets (such as receivables from broadcast
customers and distributors etc.) are assessed for specific impairment.
Information on the ageing of trade and other receivables, contract assets and due from related parties is
given in Note 32.1.
The carrying amount of financial assets recorded in the consolidated financial statements, net of any
allowances for impairment losses, represents the Group’s maximum exposure to credit risk without taking
account of the value of any collateral obtained.
(37)

(a) Credit risk (continued)
Term deposits and cash and bank balances
Cash is placed with reputable banks and the risk of default is considered remote. The table below presents
the external credit ratings as at 31 December of the Group’s short term investments and bank balances
based on Fitch and Moody’s rating scale.
Ratings Term deposits Cash and bank balances

2021 2020 2021 2020
AED 000 AED 000 AED 000 AED 000
Aa3 - - 73,823 63,982

A1 - - 37,386 32,526
A+ - - 1 5,211
A2 - 275,000 11,766 6,949
A3 - - 28,454 4,909
A- - 400,000 6,203 -
AA- - 350,000 1,351 -
Baa1 - - - 52,479
Baa2 - - 121,394 14,030
BBB+ 1,375,000 1,005,000 307,959 3,235
Others - - 53,333 30,150
1,375,000 2,030,000 641,670 213,471
Less: loss allowance (752) (673) (290) (96)
1,374,248 2,029,327 641,380 213,375
(b) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The Group’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses
or risking damage to the Group’s business and reputation. A major portion of the Group’s funds are
invested in short term investments which are readily available to meet expected operational expenses,
including servicing of financial obligations. The table in Note 32.2 analyses the Group’s non-derivative
financial liabilities and derivative financial liabilities, if any, into relevant maturity groupings based on the
remaining period at the reporting date to the contractual maturity date. Derivative financial liabilities, if
any, are included in the analysis if their contractual maturities are essential for an understanding of the
timing of the cash flows. The amounts disclosed in the table are the contractual undiscounted cash flows.
(38)

(c) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. Such as foreign exchange rates, interest rates and equity prices will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while
optimising the return. The Group’s exposure to market risk arises from:
 Foreign exchange risk

 Cash flow and fair value interest rate risks
(i) Foreign exchange risk
The Group is exposed to currency risk on sales and purchases that are denominated in a currency, primarily
the Euro/GBP, other than the functional currency of the Company and its subsidiaries. In respect of the
Group’s transactions denominated in US Dollars (USD), the Group is not exposed to material currency
risk as the AED is currently pegged to the USD at a fixed rate of exchange.
The Group’s exposure and sensitivity analysis in respect to the foreign exchange risk is detailed in Note
32.3.
(ii) Cash flow and fair value interest rate risks
The Group’s interest rate risk arises from borrowings. Borrowings issued at variable rates expose the
Group to cash flow interest rate risk which is partially offset by short term investments held at variable
rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk.
The Group analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking
into consideration refinancing, renewal of existing positions, alternative financing and interest rate swaps.
The scenarios are run only for liabilities that represent the major interest-bearing positions.
The sensitivity analysis performed by the Group in respect to the interest rate risk is detailed in Note 32.4.
The sensitivity analysis is done on a regular basis to verify that the maximum loss potential is within the
limit given by the management.
(39)

5.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital.
Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This
ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings as shown
in the consolidated statement of financial position, less cash and bank balances and term deposits. Total
capital is calculated as ‘equity’ as shown in the consolidated statement of financial position plus net debt.
2021 2020
AED 000 AED 000
Total borrowings (Note 19) 200,000 -

Less: Cash and bank balances/term deposits (Notes 16 and 17) (2,015,628) (2,242,702)
Net debt (1,815,628) (2,242,702)

Total equity 8,531,887 8,569,412
Total capital 6,716,259 6,326,710
Gearing % (27%) (35%)
Under the terms of the major borrowing facility, the Group is required to comply with net debt to EBITDA
financial covenant. The Group has complied with this covenant in 2021.
5.3 Fair value estimation
The fair values of the Group’s financial assets and liabilities approximated their carrying values as reflected
in these consolidated financial statements.
The table below analyses financial instruments carried at fair value, by valuation method. The different
levels have been defined as follows:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within level 1 that are observable for asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3 – Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs).
(40)

5.3 Fair value estimation (continued)

In AED’000
Level 1 Level 2 Level 3 Total
At 31 December 2021
Financial asset at fair value through other
comprehensive income (Note 11) - - 18,368 18,368
- - 18,368 18,368
At 31 December 2020
comprehensive income (Note 11) - - 18,368 18,368
- - 18,368 18,368
The fair value of financial instruments that are not traded in an active market is determined by using
valuation techniques. These valuation techniques maximize the use of observable market data where it is
available and rely as little as possible on entity specific estimates.
Financial instruments comprise financial assets and financial liabilities.
Financial assets of the Group include financial assets at FVOCI, cash and bank balances, trade and other
receivables, contract assets, due from related parties and short term investments. Financial liabilities of the
Group include borrowings, trade payables and accruals, due to other telecommunication operators, accrued
royalty, due to related parties and other payables and accruals. The fair values of these financial assets and
liabilities are not materially different from their carrying values unless stated otherwise (Note 32).
(41)

6 Property, plant and equipment
Plant and Furniture Motor Capital work in
Buildings equipment and fixtures vehicles progress Total
AED 000 AED 000 AED 000 AED 000 AED 000 AED 000
Cost
At 1 January 2020 52,517 18,454,092 319,811 4,438 606,846 19,437,704
Additions 15 1,210,437 6,129 - 469,567 1,686,148
Addition: asset retirement obligations - 9,343 - - - 9,343
Transfers - 456,458 8,319 - (464,777) -
Disposals/write-off - (196,207) (6,359) (35) (646) (203,247)
At 31 December 2020 52,532 19,934,123 327,900 4,403 610,990 20,929,948
Additions - 1,999,128 6,979 - 457,825 2,463,932
Addition: asset retirement obligations - 8,095 - - - 8,095
Transfers - 412,735 8,570 - (421,305) -
Disposals/write-off - (208,785) (1,880) - (74,001) (284,666)
At 31 December 2021 52,532 22,145,296 341,569 4,403 573,509 23,117,309
Depreciation / impairment
At 1 January 2020 31,176 11,311,429 276,050 3,499 74,431 11,696,585
Reclassifications (Note 6.1) - 8,879 - - 14,558 23,437
Charge for the year 2,273 1,316,038 17,746 385 30 1,336,472
Disposals/write-off - (194,303) (6,126) (35) (29) (200,493)
Impairment charge - 2,247 1,024 - 7,254 10,525
At 31 December 2020 33,449 12,444,290 288,694 3,849 96,244 12,866,526
Reclassifications (Note 6.2) - 5,205 - - (11,761) (6,556)
Charge for the year 6,701 1,388,812 19,825 344 1,718 1,417,400
Disposals/write-off - (208,014) (1,730) - (74,001) (283,745)
Impairment charge 8,866 45,917 136 - 695 55,614
At 31 December 2021 49,016 13,676,210 306,925 4,193 12,895 14,049,239
Net book value
At 31 December 2021 3,516 8,469,086 34,644 210 560,614 9,068,070
At 31 December 2020 19,083 7,489,833 39,206 554 514,746 8,063,422
The carrying amount of the Group’s buildings include a nominal amount of AED 2 (2020: AED 2) in relation to plots of land granted to the Group by the UAE Government.
(42)

6 Property, plant and equipment (continued)
6.1 During the year 2020, management of the Group undertook a review of the individual asset wise
categorisation of its property, plant and equipment (PPE) and intangible assets to reflect changes in
technology and information technology architecture. As a result of the review management has identified
certain PPE assets for which accumulated depreciation was recorded under intangible assets instead of PPE,
therefore re-classified from intangible assets to PPE.
6.2 During the year 2021, the management of the Group undertook a review and re-classified impairment
amounting to AED 6,556 thousand from accumulated impairment PPE to allowance for inventory
obsolescence.
7 Right-of-use assets
Land and Furniture Motor
buildings and fixtures vehicles Total
AED 000 AED 000 AED 000 AED 000
Cost
At 1 January 2020 1,999,814 945 2,716 2,003,475
Additions 696,817 - - 696,817
Transfer to lease receivable (177,425) - - (177,425)
Re-measurement 14,778 - - 14,778
Disposals (51,002) - (144) (51,146)
At 31 December 2020 2,482,982 945 2,572 2,486,499
Additions 143,608 - - 143,608
Re-measurement 32,857 - 206 33,063
Disposals (35,149) - (2,778) (37,927)
At 31 December 2021 2,624,298 945 - 2,625,243
Depreciation
At 1 January 2020 302,409 100 1,315 303,824
Charge for the year 361,103 100 1,206 362,409
Disposals (31,019) - (144) (31,163)
At 31 December 2020 632,493 200 2,377 635,070
Charge for the year 367,106 100 401 367,607
Disposals (24,421) - (2,778) (27,199)
At 31 December 2021 975,178 300 - 975,478
Net book value

At 31 December 2021 1,649,120 645 - 1,649,765
Net book value

At 31 December 2020 1,850,489 745 195 1,851,429
The Group leases several assets including shops, technical sites, offices, warehouses, billboards and motor
vehicles. The average lease term is 8.77 years. Short term and low value leases are also included in right of
use assets.
The maturity analysis of lease liabilities is presented in (Note 18).
(43)

8 Intangible assets and goodwill

2021 2020
AED 000 AED 000
Goodwill 413,220 413,220

Intangible assets 445,975 486,995
859,195 900,215
Goodwill
The Group acquired the business of three wholly owned subsidiaries/divisions of Tecom Investments FZ
LLC with effect from 31 December 2005. Goodwill represents the excess of purchase consideration paid
over the fair value of net assets acquired.
Carrying amount of goodwill allocated to each of Cash Generating Units (“CGU”) is as follows:
2021 2020
AED 000 AED 000
Broadcasting operations - -
Fixed line business 413,220 413,220
413,220 413,220
The Group tests goodwill for impairment annually. The recoverable amount of the Cash Generating Units
(“CGU”) is determined using the Discounted Cash Flow method based on the five-year business outlook.
As of 31 December 2020, the estimated recoverable amount of the broadcasting CGU was lower than the
carrying amount of its net assets including goodwill, by AED 137,010 thousands. As a result of this analysis,
the Group has recognised an impairment charge of AED 135,830 thousand during the year 2020 against
broadcasting CGU goodwill and AED 1,180 thousand against related assets. Accordingly, goodwill related
to broadcasting CGU was fully written off in 2020. The impairment charge of AED 135,830 thousand on
broadcasting CGU goodwill is presented separately on consolidated statement of comprehensive income
and AED 1,180 thousand related to broadcasting CGU assets is disclosed in operating expenses under
“depreciation and impairment on property, plant and equipment”.
The estimated recoverable amount of the fixed line business CGU exceeded its carrying amount by
approximately 217%.
The key assumptions for the fixed line business CGU value-in-use calculations at 31 December 2021
include:
- 5 year revenue growth projections;

- a pre-tax discount rate of 8.26% (2020: 10.62%) based on the historical industry average weighted-
average cost of capital;
- maintenance capital expenditure projections allowing for replacement of existing infrastructure at the
end of its useful life; and
- terminal growth rate of 2%, determined based on management’s estimate of the long term compound
EBITDA growth rate, consistent with the assumption that a market participant would make.
(44)

8 Intangible assets and goodwill (continued)

Goodwill (continued)
The fixed line model calculations are particularly sensitive to the revenue growth assumptions, including
expectations around the impact of future competition in the Group's existing network zones. However,
management considers that it would require a significant decline in revenue growth before any impairment
of the fixed line CGU would be required.
Sensitivity analysis
The Group has conducted an analysis of the sensitivity of impairment test to changes in the key assumptions
used to determine the recoverable amount.
For fixed line business CGU, any adverse movement in key assumptions (1% underperformance against
forecast revenue or 1% increase in discount rate) would not result in an impairment charge.
Intangible assets
Capital Telecomm- Indefeasible
Software work in unications rights of
in use progress license fees use Total
Cost
At 1 January 2020 2,396,528 97,371 124,500 199,304 2,817,703
Additions 25,899 108,230 - 8,055 142,184
Transfers 21,706 (21,706) - - -
Write off (54) - - - (54)
At 31 December 2020 2,444,079 183,895 124,500 207,359 2,959,833
Additions 19,017 124,633 - - 143,650
Transfers 108,489 (108,489) - - -
Write off (225,054) (41,208) - - (266,262)
At 31 December 2021 2,346,531 158,831 124,500 207,359 2,837,221
Amortisation/impairment
At 1 January 2020 1,983,457 60,402 86,293 185,155 2,315,307
Reclassifications* (4,244) (19,194) - - (23,438)
Charge for the year 158,304 - 6,223 16,404 180,931
Impairment charge 87 - - - 87
Write off (49) - - - (49)
At 31 December 2020 2,137,555 41,208 92,516 201,559 2,472,838
Charge for the year 168,350 - 6,223 5,800 180,373
Impairment charge 4,144 106 - - 4,250
Write off (225,007) (41,208) - - (266,215)
At 31 December 2021 2,085,042 106 98,739 207,359 2,391,246
Net book value

At 31 December 2021 261,489 158,725 25,761 - 445,975
At 31 December 2020 306,524 142,687 31,984 5,800 486,995
* The management has identified certain PPE assets for which accumulated depreciation was recorded
under intangible assets instead of PPE, therefore re-classified from intangible assets to PPE (Note 6.1).
(45)

8 Intangible assets and goodwill (continued)
Intangible assets
The software in use includes all applications such as ERP and Billing systems which are currently in use
while the capital work in progress relates to the development of software.
Telecommunication license fees represent charge by the Telecommunications Regulatory Authority to the
Group to grant the license to operate as a telecommunications service provider in the UAE.
Indefeasible right of use represent the fees paid to a telecom operator to obtain rights to use Indoor Building
Solutions relating to certain sites in the UAE. Also included in the balance is an amount charged by an
operator of a fibre-optic cable system for the right to use its submarine fibre-optic circuits and cable system.
9 Lease receivable
Current Non-current
2021 2020 2021 2020
AED 000 AED 000 AED 000 AED 000
Lease receivable 16,371 18,213 139,422 149,963
During the year 2020, the Group signed a sub-lease agreement to lease its data centre with a customer for
a period of 10 years.
2021 2020
AED 000 AED 000
Maturity analysis:
Not later than 1 year 19,337 18,774
Later than 1 year and not later than 5 years 83,328 80,901
Later than 5 years 81,357 103,122
184,022 202,797
Less: unearned interest on lease receivable (28,229) (34,621)
155,793 168,176
The interest income on lease receivable is presented in (Note 28).
(46)

10 Investments accounted for using the equity method
Investments Principal activities Shareholding Country of

2021 2020 incorporation
Dubai Smart City Accelerator To run accelerator programs with the 23.53% 23.53% UAE
FZCO purpose of sourcing innovation and
technology applicable to the Smart
City Industry
Advanced Regional Provision of connectivity and data 50% 50% UAE
Communications Solutions centre services
Holding Limited
Movement in investments in associates and joint venture

2021
Associate Joint venture Total
AED 000 AED 000 AED 000
At 1 January 1,356 28,479 29,835

Share of profit/(loss) for the year 1,136 (6,699) (5,563)
At 31 December 2,492 21,780 24,272
2020
Associates Joint venture Total
AED 000 AED 000 AED 000
At 1 January 268,948 - 268,948

Investments during the year - 31,000 31,000
Share of profit/(loss) for the year 12,620 (2,521) 10,099
Disposal of investment during the year (Note 10.1) (280,212) - (280,212)
At 31 December 1,356 28,479 29,835
Summarised financial information for the associates and joint venture are as follows:
(47)

10 Investments accounted for using the equity method (continued)
Associate and joint venture statement of financial position as of 31 December and statement of
comprehensive income for the year ended 31 December:
2021
Associate Joint venture Total
AED 000 AED 000 AED 000
Non-current assets 10,073 16,548 26,621

Current assets 713 39,319 40,032
Current liabilities (195) (2,840) (3,035)
Non-current liabilities - (9,467) (9,467)
Net assets 10,591 43,560 54,151
Revenue - 4,400 4,400

Profit/(loss) for the year 4,828 (13,337) (8,509)
2020
Associates Joint venture Total
AED 000 AED 000 AED 000
Non-current assets 5,038 246 5,284

Current assets 741 63,915 64,656
Current liabilities (9) (7,208) (7,217)
Non-current liabilities - - -
Net assets 5,770 56,953 62,723
Revenue 156,127 4,113 160,240

Profit/(loss) for the year 37,689 (5,042) 32,647
10.1 Gain on disposal of investment accounted for using equity method
In 2020, EITC Investment Holding (a fully owned subsidiary of EITC Group), signed with Technology
Holding Company (a fully owned subsidiary of Mamoura Diversified Global Holding PJSC), a sale and
purchase agreement to sell its 26% shareholding (including its interest in shareholder loans) in Khazna Data
Center Limited for a consideration of AED 800 million against carrying value of investment amounting to
AED 280 million.
(48)

11 Financial asset at fair value through other comprehensive income
2021 2020
AED 000 AED 000
Unlisted shares
Anghami 18,368 18,368
The Group is holding 4.28% shares in Anghami, a Cayman Islands exempted company registered in the
Cayman Islands (unlisted company). The company is involved in the provision of media related content.
The Group classified the investment as financial asset at fair value through other comprehensive income.
Due to the uncertain nature of cash flows arising from investment by the Group in unlisted shares of
Anghami, the carrying amount is considered to be the best estimate of its fair value.
12 Contract assets and contract liabilities
Current Non-current
2021 2020 2021 2020
AED 000 AED 000 AED 000 AED 000
Contract assets* 519,524 493,153 295,723 226,618

Less: provision for impairment of
contract assets (56,683) (39,052) (22,313) (15,402)
462,841 454,101 273,410 211,216
*Contract assets include unamortised subscriber acquisition costs (contract costs) amounting to
AED 376,144 thousands (2020: AED 314,288 thousands).
12.1 The movement in the allowance for expected credit losses of contract assets is as follows:
2021 2020
AED 000 AED 000
1 January 54,454 45,355

Charge during the year 24,542 9,099
31 December 78,996 54,454
Current Non-current
2021 2020 2021 2020
AED 000 AED 000 AED 000 AED 000
Contract liabilities 438,734 358,538 247,073 195,149
There was no revenue recognised in the current reporting period that is related to performance obligations
that were satisfied in the prior year. The Group contracts with customers are for periods of one year or less
or are billed based on service provided. As permitted under IFRS 15, the transaction price allocated to the
unsatisfied contracts is not disclosed.
(49)

13 Trade and other receivables

2021 2020
AED 000 AED 000
Trade receivables 1,822,391 1,761,251

Due from other telecommunications operators* 205,341 103,472
Less: provision for impairment of trade receivables and due from other
telecommunications operators (633,801) (646,099)
Trade receivables, net 1,393,931 1,218,624
Prepayments** 147,611 124,726
Advances to suppliers 397,445 240,829
Other receivables 105,893 142,222
Total trade and other receivables 2,044,880 1,726,401
Non-current*** 83,338 -
Current 1,961,542 -
Total trade and other receivables 2,044,880 1,726,401
*Due from other telecommunications operators are presented after netting of payable balances (where right
to set off exists) amounting to AED 1,133,698 thousand (31 December 2020: AED 862,534 thousand).
** Prepayments include unamortised loan fees amounting to AED 16,818 thousand (31 December 2020:
AED Nil thousands) related to the borrowings secured during the period (Note 19).
*** Total non-current includes the non-current portion for the unamortised loan fees amounting to
AED14,231 thousand and receivable amounting to AED 69,107 thousand against settlement of a legal
dispute which will be collected over period of three years (Note 35).
The movement in the allowance for expected credited losses of trade receivables and due from other
telecommunications operators is as follows:
2021 2020
AED 000 AED 000
At 1 January 646,099 662,358

Charge for the year 153,497 219,996
Write-off during the year (199,486) (227,571)
Transfer of provision from/(to) due from related parties 33,691 (8,684)
At 31 December 633,801 646,099
(50)

14 Inventories
2021 2020
AED 000 AED 000
Goods held for sale 78,885 83,947

Less: allowance for inventory obsolescence (20,416) (22,434)
At 31 December 58,469 61,513
Inventories recognised as an operating expense during the year 945,903 662,508
(Release)/loss allowance for inventory obsolescence recognised

as an operating expense during the year (8,574) 5,105
15 Related party balances and transactions

Related parties comprise the founding shareholders of the Company, entities under common shareholding,
its directors, key management personnel and entities over which they exercise control, joint control or
significant influence. The founding shareholders are Emirates Investment Authority, Mamoura Diversified
Global Holding PJSC & Emirates International Telecommunications Company L.L.C. Transactions with
related parties are in the ordinary course of business and are approved by the Group’s management or by
the Board of Directors.
Related party balances

2021 2020
AED 000 AED 000
Due from related parties
Axiom Telecom LLC (Entity under common shareholding) 47,999 105,695
Injazat Data Systems LLC (Entity under common shareholding) - 63,193
ARCS Bahrain S.P.C (Subsidiary of a joint venture) 16 790
ARCS Holding Limited (Joint venture) 640 3,882
48,655 173,560
Less: Loss allowance - (33,691)
48,655 139,869
The movement in loss allowances for due from related parties is as follows:
2021 2020
AED 000 AED 000
At 1 January 33,691 -
Reclassified (to)/from trade and other receivables (33,691) 8,684
Expected credit losses during the year - 25,007
Closing balance - 33,691
(51)

15 Related party balances and transactions (continued)

2021 2020
AED 000 AED 000
Due to related parties
Tecom Investments FZ LLC (Entity under common shareholding) 6,727 2,426
Khazna Data Center Limited (Associate) - 2,684
Closing balance 6,727 5,110
Due to the short term nature of related party balances, their carrying amount is considered to be the same
as their fair values.
Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note. All transactions with related parties referred to below are
in the ordinary course of business. The following table reflects the gross value of transactions with related
parties.
2021 2020
AED 000 AED 000
Net revenue 725,707 948,070

Rent and services 42,826 35,168
Payment of lease liabilities 16,724 17,287
Recharge of operating expenses incurred on behalf of joint venture 3,020 3,882
Additional funding to associate and joint venture - 31,000
Sale of an associate to a related party (Note 10.1) - 800,000
Key management compensation

2021 2020
AED 000 AED 000
Short term employee benefits 35,088 30,628

Employees’ end of service benefits 377 245
Post-employment benefits 1,139 1,245
Long term incentives 4,000 4,000
40,604 36,118
Board of Directors fee during the year was AED 10,992 thousand (2020: AED 10,000 thousand).
No loan has been provided to Directors, their spouses, children and relatives of the second degree and any
corporates in which they own 20% or more.
(52)

15 Related party balances and transactions (continued)
The Group also provides telecommunication services to the Federal Government (including Ministries and
local bodies). These transactions are at normal commercial terms. The credit period allowed to Government
customers ranges from 15 to 150 days. Refer Note 27 for disclosure of the royalty payable to the Federal
Government of the UAE. In accordance with IAS 24 (revised 2009): Related Party Disclosures, the Group
has elected not to disclose transactions with the UAE Federal Government and other entities over which
the Federal Government exerts control, joint control or significant influence.
16 Term deposits
2021 2020
AED 000 AED 000
Term deposits* 1,374,248 2,029,327
*Term deposits represented net off loss allowance.
Term deposits represent bank deposits with maturity periods exceeding 3 months from the date of
acquisition. These term deposits denominated primarily in UAE Dirham, with banks. Interest is earned on
these term deposits at prevailing market rates. The carrying amount of these term deposits approximates to
their fair value.
17 Cash and bank balances
For the purposes of the consolidated statement of cash flows, cash and cash equivalents comprise:
2021 2020
AED 000 AED 000
Cash at bank (on deposit and call accounts)* 640,564 212,591

Cash on hand 816 784
Cash and bank balances 641,380 213,375
Less: margin on guarantees (Note 31) (2,503) (2,503)
638,877 210,872
Cash and cash equivalents
* Cash at bank represented net off loss allowance.
(53)

18 Lease liabilities
2021 2020
AED 000 AED 000
At 1 January 2,308,623 1,856,805
Lease liabilities during the year 143,608 696,817
Interest expense during the year 82,767 86,454
Payments made during the year (334,617) (327,371)
Re-measurement during the year 33,063 14,778
Disposals during the year (8,458) (18,860)
Closing balance 2,224,986 2,308,623
Current Non-current
2021 2020 2021 2020
AED 000 AED 000 AED 000 AED 000
Lease liabilities 671,502 616,896 1,553,484 1,691,727
2021 2020
AED 000 AED 000
Maturity analysis:
Not later than 1 year 746,123 692,269
Later than 1 year and not later than 5 years 1,042,948 1,082,705
Later than 5 years 591,884 733,887
2,380,955 2,508,861
Less: unearned interest on lease liabilities (155,969) (200,238)
2,224,986 2,308,623
The Group does not face a significant liquidity risk with regard to its lease liabilities.
The Group does not have any variable component in lease payments.
(54)

19 Borrowings
On 29 April 2021, the Group signed a long term financing agreement with a group of local and international
banks for an unsecured credit facility (the “Financing”) of AED 3,769 million equivalent. The Financing is
composed of (a) a term loan facility of AED 1,788 million equivalent and a maturity of 7 years; and (b) a
revolving credit facility of AED 1,981 million equivalent and a maturity of 5 years extendable to 7 years.
The Financing proceeds will be used for general corporate purposes.
During the period, the Group made a drawdown of AED 200 million equivalent from the revolving credit
facility.
The details of borrowings are as follows:

Current
2021 2020
AED 000 AED 000
Bank borrowings 200,000 -

200,000 -
The transaction costs allocated to the Financing have been capitalised and will be amortised on a straight
line basis over the term of the agreement. Unamortised transaction costs as at 31 December 2021 is
presented within Note 13 as a prepayment. Carrying value of borrowings as at 31 December 2021
approximate fair value.
20 Provision for employees’ end of service benefits
The Group provides end of service benefits (defined benefit obligations) to its eligible employees. The most
recent actuarial valuations of the present value of the defined benefit obligations were carried out as at
31 December 2021 by a registered actuary in the UAE. The present value of defined benefit obligations and
the related current and past service cost, were measured using the Projected Unit Credit Method. Changes
in the present value of defined benefit obligations is as follows:
2021 2020
AED 000 AED 000
At 1 January 254,037 258,740

Current service cost 23,539 32,970
Interest cost (Note 28) 5,844 8,090
Actuarial loss/(gain) recognised in other comprehensive income* 5,042 (19,451)
Release of past service cost** (27,674) -
Benefits paid during the year (22,350) (26,312)
At 31 December 238,438 254,037
(55)

20 Provision for employees’ end of service benefits (continued)
*Actuarial loss/(gain) recognised in other comprehensive income relates to re-measurements of the

employees’ end of service benefits obligation from changes in financial assumptions amounting to
AED 4,079 thousand (2020: AED 437 thousand), experience adjustments amounting to AED 963 thousand
(2020: AED 18,053 thousand) and demographic assumptions amounting to AED nil thousand (2020:
AED 961 thousand).
** During the year 2021, the Group has changed its employees’ end of service benefits structure, which has
resulted release of past service cost.
The provision is recognised based on the following significant actuarial assumptions:
2021 2020
Average period of employment (years) 7.38 7.05

Average annual rate of salary increase 2.00% 2.00%
Average annual rate of salary increase for next 2 years 1% 1%
Discount rate 2.10% 2.50%
Through its defined benefit plan, the Group is exposed to a number of actuarial risks, the most significant of
which include, longevity risk, withdrawal risk and salary increase risk.
Sensitivity of the provision for employees’ end of service benefits to changes in principal assumptions is
included below:
Impact on defined benefit obligation

Change in Increase in Decrease in
assumption assumption assumption
2021 2020 2021 2020 2021 2020
Withdrawal rate 10% 10% (0.14%) (0.37%) 0.15% 0.39%

Mortality age 1 year 1 year (0.04%) (0.01%) 0.04% 0.01%
Average annual rate of salary increase 1% 1% 7.56% 7.61% (6.83%) (6.84%)
Discount rate 1% 1% (6.29%) (6.30%) 7.08% 7.13%
(56)

21 Other provisions
Asset retirement obligations
In the course of the Group’s activities a number of sites and other commercial premises are utilised which are
expected to have costs associated with exiting and ceasing their use. The associated cash outflows are
expected to occur at the dates of exit of the assets to which they relate. These assets are long-term in nature,
primarily in period up to 10 years from when the asset is brought into use.
2021 2020
AED 000 AED 000
At 1 January 184,581 169,832

Additions during the year (net) 5,844 6,557
Adjustment for change in discount/inflation rates 669 1,239
Unwinding of discount 7,494 6,953
At 31 December 198,588 184,581
The provision is recognised based on the following significant assumptions:

2021 2020
Average period of restoration (years) 10 10

Inflation rate 2.06% 1.94%
Discount rate 3.86% 3.87%
22 Trade and other payables

2021 2020
AED 000 AED 000
Trade payables and accruals 2,259,681 1,438,164

Due to other telecommunications operators* 443,533 593,085
Accrued federal royalty (Note 27) 1,499,540 1,624,832
Valued Added Tax (VAT) payable 20,622 4,829
Other payables and accruals 369,537 330,887
4,592,913 3,991,797
*Due to other telecommunications operators are presented after netting of receivable balances (where right
to set off exists) amounting to AED 1,133,698 thousand (31 December 2020: AED 862,534 thousand).
The carrying amounts of trade and other payables approximate their fair value.
(57)

23 Share capital
2021 2020
AED 000 AED 000
Authorised, issued and fully paid up share capital

(4,532,905,989 shares of AED 1 each) 4,532,906 4,532,906
24 Share premium
2021 2020
AED 000 AED 000
Premium on issue of common share capital 232,332 232,332
25 Other reserves
Statutory reserve Hedge
(Note 25.1) reserve Total
AED 000 AED 000 AED 000
At 1 January 2020 1,764,120 520 1,764,640

Transfer to statutory reserve 144,291 - 144,291
Fair value changes on cash flow hedge - (520) (520)
At 31 December 2020 1,908,411 - 1,908,411
At 1 January 2021 1,908,411 - 1,908,411

Transfer to statutory reserve 110,074 - 110,074
At 31 December 2021 2,018,485 - 2,018,485
25.1 In accordance with the UAE Federal Law No. 2 of 2015 ("Companies Law") and the Company's Articles
of Association, 10% of the net profit is required to be transferred annually to a non-distributable statutory
reserve. Such transfers are required to be made until the balance of the statutory reserve equals one half of
the Company's paid up share capital.
(58)

26 Operating expenses
31 December
2021 2020
AED 000 AED 000
Interconnect costs 2,842,683 2,552,170

Depreciation and impairment on property, plant and equipment (Note 6) 1,473,014 1,346,997
Product costs 1,167,403 833,451
Staff costs 996,419 979,194
Network operation and maintenance 783,357 737,857
Commission 398,158 367,064
Telecommunication license and related fees 359,365 390,813
Depreciation on right-of-use assets (Note 7) 367,607 362,409
Marketing 203,532 192,155
Amortisation and impairment on intangible assets (Note 8) 184,623 181,018
Outsourcing and contracting 107,186 118,054
Others 206,176 192,721
9,089,523 8,253,903
During the year ended 31 December 2021, the Group has paid AED 1,576 thousand (2020: AED 1,055
thousand) for various social contribution purposes.
In order to conform with current period presentation, the items “network operation and maintenance”,
“marketing”, “outsourcing and contracting” and “other expenses” for the year ended 31 December 2020
were presented reflecting certain reclassifications to ensure comparability with 2021 figures. Without these
reclassifications the figures should have been AED 703,448 thousand, AED 150,629 thousand,
AED 196,435 thousand and AED 190,275 thousand respectively.
(59)

27 Federal royalty
The royalty rates payable to the UAE Ministry of Finance for the period from 2017 to 2021 are 15% on
regulated revenue and 30% on regulated profit after deducting royalty on regulated revenue.
2021 2020
AED 000 AED 000
Total revenue for the year (Note 34) 11,681,970 11,083,845

Broadcasting revenue for the year (148,236) (148,214)
Other allowable deductions (3,924,101) (3,232,266)
Total adjusted revenue 7,609,633 7,703,365
Profit before royalty 2,482,638 2,954,852
Allowable deductions (307,209) (467,439)
Total regulated profit 2,175,429 2,487,413
2021 2020
AED 000 AED 000
Charge for royalty: 15% of the total adjusted revenue plus 30% of net
regulated profit for the year before distribution (after deducting 15% of
the total adjusted revenue). 1,451,640 1,555,077
Adjustments to charge (69,746) (43,139)

Charge for the year 1,381,894 1,511,938
Movement in the royalty accruals is as follows:
At 1 January 1,624,832 2,062,972

Payment made during the year (net) (1,507,186) (1,950,078)
Charge for the year 1,381,894 1,511,938
At 31 December (Note 22) 1,499,540 1,624,832
Federal royalty for the year 2021 is to be paid within 4 months from the year ended 31 December 2021.
(60)

28 Finance income and costs

2021 2020
AED 000 AED 000
Finance income
Interest income 21,169 47,771
Finance income on lease receivable 6,391 2,804
27,560 50,575
Finance costs
Interest expense on lease liabilities 82,767 86,454
Interest expense others* 23,580 19,405
106,347 105,859
*Interest expense others includes interest cost on defined benefit obligations, unwinding of discount on asset
retirement obligations and finance costs on borrowings.
29 Earnings per share

2021 2020
Profit for the year (AED 000) 1,100,744 1,442,914

Weighted average number of shares (‘000’) 4,532,906 4,532,906
Basic and diluted earnings per share (AED) 0.24 0.32
Diluted earnings per share have not been presented separately as the Group has no commitments that would
dilute earnings per share.
30 Changes in working capital

2021 2020
AED 000 AED 000
Change in:
Inventories 11,618 45,177
Contract assets (95,476) 7,773
Trade and other receivables (458,372) (141,809)
Trade and other payables 1,502,073 1,531,281
Contract liabilities 132,120 (16,427)
Due from related parties 91,214 119
Due to related parties 1,617 (963)
Net changes in working capital 1,184,794 1,425,151
Non-cash transactions:
Accruals for property, plant and equipment 603,677 (170,679)
Accruals for intangible assets 14,539 (16,852)
Additions to right-of-use assets 176,671 519,392
(61)

30 Changes in working capital (continued)

2021 2020
AED 000 AED 000
Loss allowances:
Loss allowance on contract assets 24,542 9,099
Loss allowance on trade receivables 153,497 219,996
Loss allowance on due from related parties - 25,007
Loss allowance on term deposits 79 -
178,118 254,102
The reconciliation for the changes in liabilities arising from financing activities are presented in Notes 18
and 19 of the consolidated financial statement.
31 Contingencies and commitments
The Group has outstanding bank guarantees amounting to AED 71,837 thousand (2020: AED 82,647). Bank
guarantees are secured against margin of AED 2,503 thousand (2020: AED 2,503 thousand) (Note 17).
The Group is subject to litigations in the normal course of business and the management is of the view that
the outcome of these court cases will not have a material impact on the Group's consolidated financial
statements. Details of these cases are not disclosed in order not to prejudice the Group’s position in these
litigations.
The Group has outstanding capital commitments amounting to AED 1,033,232 thousand (2020:
AED 1,282,735 thousand).
(62)

32 Financial instruments and risk management
32.1 Credit risk
Exposure to credit risk
The carrying amount and the fair value of financial assets represent the maximum credit exposure. The
maximum exposure to credit risk at the reporting date was:
Notes Carrying amount Fair value

2021 2020 2021 2020
AED 000 AED 000 AED 000 AED 000
Non-derivatives
comprehensive income 11 18,368 18,368 18,368 18,368
Lease receivable 9 155,793 168,176 155,793 168,176
Contract assets 12 360,106 351,028 360,106 351,028
Trade and other receivables 13 1,499,824 1,360,846 1,499,824 1,360,846
Due from related parties 15 48,655 139,869 48,655 139,869
Term deposits 16 1,374,248 2,029,327 1,374,248 2,029,327
Cash and bank balances 17 641,380 213,375 641,380 213,375
4,098,374 4,280,989 4,098,374 4,280,989
For the purpose of the exposure to credit risk on financial assets disclosure, non-financial assets (subscriber
acquisition costs, prepayments and advances to suppliers) amounting to AED 921,201 thousand (2020:
AED 679,844 thousand) have been excluded from contract assets, trade and other receivables and due from
related parties.
(63)

32 Financial instruments and risk management (continued)
32.1 Credit risk (continued)
Exposure to credit risk (continued)
Impairment of contract assets, trade receivables and due from related parties
The ageing of contract assets, trade receivables and due from related parties as follows:
Gross Impaired Impaired Gross Impaired Impaired

2021 2021 2021 2020 2020 2020
AED 000 % AED 000 AED 000 % AED 000
Not past due 1,096,930 3.28% (35,925) 903,126 1.29% (11,658)

Past due 0-30 days 371,443 7.14% (26,514) 232,426 9.06% (21,051)
Past due 31-180 days 363,921 21.07% (76,692) 546,139 11.59% (63,303)
More than 180 days 1,816,893 31.57% (573,666) 1,624,609 39.29% (638,232)
3,649,187 (712,797) 3,306,300 (734,244)
Non-financial assets (subscriber acquisition costs, prepayments and advances to suppliers) amounting to
AED 921,201 thousand (2020: AED 679,844 thousand) have been excluded from contract assets, trade
receivables and due from related parties.
To measure the expected credit losses, contract assets, trade receivables and due from related parties have
been grouped based on shared credit risk characteristics and the days past due. The expected credit losses
are based on the analysis of billing, collection and outstanding balance over an appropriate period adjusted
for factors that are specific to the debtors, general economic conditions and an assessment of both the current
as well as the forecast direction of conditions at the reporting date.
The impairment provision in respect of contract assets, trade receivables and due from related parties is used
to record impairment losses unless the Group is satisfied that there is no reasonable expectation of recovery
of the amount owing is possible; at that point the amounts considered irrecoverable are written-off. Indicators
that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage
in a repayment plan with the group, and a failure to make contractual payments for a period of greater than
365 days past due.
(64)

32.2 Liquidity risk
The following are the contractual maturities of financial liabilities along with fair values:
31 December 2021
---------------- Contractual cash flows --------------------------
Fair Carrying 6 months 6-12 Above 2
value amount Total or less months 1-2 years years
AED 000 AED 000 AED 000 AED 000 AED 000 AED 000 AED 000
Non-derivative
financial liabilities
Borrowings 200,000 200,000 200,000 200,000 - - -
Trade payables and
accruals 2,259,681 2,259,681 2,259,681 2,259,681 - - -
Due to other
telecommunication
operators 443,533 443,533 443,533 443,533 - - -
Accrued royalty 1,499,540 1,499,540 1,499,540 1,499,540 - - -
Other payables and
accruals 369,537 369,537 369,537 369,537 - - -
Due to related
parties 6,727 6,727 6,727 6,727 - - -
4,779,018 4,779,018 4,779,018 4,779,018 - - -
31 December 2020
---------------- Contractual cash flows --------------------------
Fair Carrying 6 months 6-12 Above 2
value amount Total or less months 1-2 years years
AED 000 AED 000 AED 000 AED 000 AED 000 AED 000 AED 000
Non-derivative
financial liabilities
Borrowings - - - - - - -
Trade payables and
accruals 1,438,164 1,438,164 1,438,164 1,438,164 - - -
Due to other
telecommunication
operators 523,658 523,658 523,658 523,658 - - -
Accrued royalty 1,624,832 1,624,832 1,624,832 1,624,832 - - -
Other payables and
accruals 330,887 330,887 330,887 330,887 - - -
Due to related
parties 5,110 5,110 5,110 5,110 - - -
3,922,651 3,922,651 3,922,651 3,922,651 - - -
Contractual maturities related to lease liabilities disclosed in Note 18.
(65)

32.3 Currency risk
Exposure to currency risk
The Group’s exposure to foreign currency risk was as follows:
31 December 2021 31 December 2020

------------ Thousand ------------- ------------ Thousand ------------
EUR GBP EUR GBP
Trade receivables 7,943 345 5,360 329
Trade payables (1,148) (245) (59) (416)
Net exposure 6,795 100 5,301 (87)
The following significant exchange rates against AED have been applied during the year:
Average rate Reporting date spot rate

2021 2020 2021 2020
EUR 1 4.3715 4.1624 4.1507 4.4879
GBP 1 5.0011 4.6856 4.9500 5.0246
A 10 percent strengthening of the AED against the following currencies at 31 December would have
increased/(decreased) equity and profit by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates, remain constant.
2021 2020
AED 000 AED 000
Increase/(decrease) in profit
EUR (2,971) (2,206)
GBP (50) 41
Conversely a 10 percent weakening of the AED against the above currencies at 31 December will have had the
exact reverse effect. In each of the above cases the impact on equity would have the same values as the above
amounts.
(66)

32.4 Interest rate risk
Exposure to interest rate risk
The interest rate profile of the Group’s interest bearing financial instruments was:
Carrying Amount
2021 2020
AED 000 AED 000
Variable interest rate instruments
Bank borrowings 200,000 -
An increase of 100 basis points in interest rates at the reporting date would have decreased equity and profit
or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant.
2021 2020
AED 000 AED 000
Decrease in profit
Variable interest rate instruments (500) -
Conversely a decrease in interest rates by 100 basis points will have had the exact reverse effect. In each of
the above cases the impact on equity would have the same values as the above amounts.
(67)

32.5 Financial instruments by category
The accounting policies for financial instruments have been applied to the line items below:
2021 2020
AED 000 AED 000
Financial asset at fair value through other comprehensive income 18,368 18,368
Financial assets measured at amortised cost

Lease receivable 155,793 168,176
Contract assets 360,106 351,028
Trade and other receivables 1,499,824 1,360,846
Due from related parties 48,655 139,869
Term deposits 1,374,248 2,029,327
Cash and bank balances 641,380 213,375
4,080,006 4,262,621
Financial liabilities measured at amortised cost
Lease liabilities 2,224,986 2,308,624
Borrowings 200,000 -
Trade and other payables 4,572,291 3,991,797
Due to related parties 6,727 5,110
7,004,004 6,305,531
For the purpose of the financial instruments disclosure, non-financial assets amounting to AED 921,201
thousand (2020: AED 679,844 thousand) have been excluded from contract assets, trade and other
receivables.
33 Offsetting financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the consolidated statement of
financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts
and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities
simultaneously.
(68)

33 Offsetting financial assets and financial liabilities (continued)
The following table presents the recognised financial instruments that are offset in the statement of financial
position, as at 31 December 2021 and 31 December 2020.
31 December 2021 31 December 2020

Gross Net Gross Net
Gross amounts amount Gross amounts amount
amounts set off presented amounts set off presented
AED 000 AED 000 AED 000 AED 000 AED 000 AED 000
Financial assets
Trade and other receivables 3,178,578 (1,133,698) 2,044,880 2,588,935 (862,534) 1,726,401
Total 3,178,578 (1,133,698) 2,044,880 2,588,935 (862,534) 1,726,401
Financial liabilities
Trade and other payables 5,726,611 (1,133,698) 4,592,913 4,854,331 (862,534) 3,991,797
Total 5,726,611 (1,133,698) 4,592,913 4,854,331 (862,534) 3,991,797
34 Segment analysis
The Group mainly has operations in the UAE. The Group is organised into four major business segments
as follows:
 Mobile segment offers mobility services to the enterprise and consumer markets. Services include
mobile voice and data, mobile content and mobile broadband WIFI. Mobile handset sales, including
instalment sales, are also included in this segment.
 Fixed segment provides wire line services to the enterprise and consumer markets. Services include
broadband, IPTV, IP/VPN business internet and telephony.
 Wholesale segment provides voice and sms to national and international carriers and operators. Services
include termination of inbound international voice traffic and international hubbing.
 Others include broadcasting services, international roaming, site sharing, etc.
Segment contribution, referred to by the Group as gross margin, represents revenue less direct costs of
sales. It is calculated before charging network operating costs, sales and general and administration
expenses. This is the measure reported to the Group’s Board of Directors for the purpose of resource
allocation and assessment of segment performance.
(69)

34 Segment analysis (continued)
31 December 2021
Mobile Fixed Wholesale Others Total
Segment revenue
Timing of revenue
recognition
Over time 5,300,882 2,839,409 1,923,564 835,457 10,899,312
At a point in time 763,533 4,897 - 14,228 782,658
6,064,415 2,844,306 1,923,564 849,685 11,681,970
Segment contribution 3,060,801 2,425,731 1,374,676 421,091 7,282,299
Unallocated costs (4,845,885)
Other income 130,574
Federal royalty (1,381,894)
Finance income/costs and
share of profit of
investments accounted for
using equity method (net) (84,350)
Profit for the year 1,100,744
(70)

34 Segment analysis (continued)
31 December 2020
Mobile Fixed Wholesale Others Total
Segment revenue
Timing of revenue
recognition
Over time 5,454,339 2,562,418 1,800,823 766,097 10,583,677
At a point in time 481,756 6,191 - 12,221 500,168
5,936,095 2,568,609 1,800,823 778,318 11,083,845
Segment contribution 3,428,069 2,193,145 1,288,179 416,662 7,326,055
Unallocated costs (4,723,466)
Other income 13,904
Federal royalty (1,511,938)
Finance income/costs,
impairment of goodwill and
share of profit of
investments accounted for (181,015)
using equity method (net)
Gain on disposal of
investment accounted for
519,374
using equity method
Profit for the year 1,442,914
The Group’s assets and liabilities have not been identified to any of the reportable segments as the
majority of the operating fixed assets are fully integrated between segments. The Group believes that it
is not practical to provide segment disclosure relating to total assets and liabilities since a meaningful
segregation of available data is not feasible.
35 Other income
During the year 2021, the Group has recognised AED 130,109 thousand under other income against
settlement of a legal dispute (Note 13).
36 Comparatives
In order to conform with current year presentation, the comparative figures for the previous year has been
regrouped, where necessary. Such regrouping did not affect the previously reported profit, comprehensive
income or equity.
(71)

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Emirates Integrated Telecommunications Company PJSC and Its Subsidiaries Consolidated Financial Statements For The Year Ended 31 December 2021

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Emirates Integrated Telecommunications

Company PJSC and its subsidiaries

Consolidated financial statements

Consolidated financial statements

Independent auditors’ report 1–6

Consolidated statement of financial position 7

Consolidated statement of comprehensive income 8

Consolidated statement of changes in equity 9

Consolidated statement of cash flows 10

Notes to the consolidated financial statements 11 – 71

Tel: +971 (0) 4 376 8888

August 17th, 2016

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

We have audited the consolidated financial statements of Emirates Integrated Telecommunications

Basis for Opinion

Key Audit Matters

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Deloitte & Touche (M.E.)

Rama Padmanabha Acharya

Total current liabilities 5,909,876 4,972,341

Total liabilities 8,147,459 7,297,835

Consolidated statement of comprehensive income

Operating expenses 26 (9,089,523) (8,253,903)

Other comprehensive (loss)/income

Items that will not be re‐classified to profit or loss

Other comprehensive (loss)/income for the year (5,042) 18,931

Basic and diluted earnings per share (AED) 29 0.24 0.32

Consolidated statement of changes in equity

At 1 January 2020 4,532,906 232,332 1,764,640 2,118,877 8,648,755

Transfer to statutory reserve - - 144,291 (144,291) -

At 1 January 2021 4,532,906 232,332 1,908,411 1,895,763 8,569,412

At 31 December 2021 4,532,906 232,332 2,018,485 1,748,164 8,531,887

Consolidated statement of cash flows

Cash flows from investing activities

Cash flows from financing activities

Non-cash transactions are disclosed in Note 30 of the consolidated financial statements.

Notes to the consolidated financial statements

The Company has either directly or indirectly the following subsidiaries:

Notes to the consolidated financial statements

(i) Functional and presentation currency

(ii) Basis of consolidation

(iii) Going concern

2.1 New standards, amendments and interpretations

Notes to the consolidated financial statements

2 Basis of preparation (continued)

2.1 New standards, amendments and interpretations (continued)

 Classification of Liabilities as Current or Non-Current - amendments to IAS 1 (effective from

Notes to the consolidated financial statements

2 Basis of preparation (continued)

2.2 New standards, amendments and interpretations (continued)

2.2 Earnings per share

2.3 Critical accounting judgements and key sources of estimation uncertainty

Notes to the consolidated financial statements

2 Basis of preparation (continued)

Critical accounting judgements

(i) Asset retirement obligations

(ii) Federal royalty

(iii) Allocation of the transaction price