56 / 88
Notes to the consolidated
financial statements
For the financial Year ended December 31, 2014
1. Background
GB Auto Co. (the Company) is an Egyptian joint stock company incorporated on 15 July 1999 under the name of GB Capital for
Trading and Capital Lease and under Law No. 159 of 1981. The company is commercially registered under No. 3422, Cairo.
Based on the decision of the Extraordinary General Assembly Meeting held on 26 April 2007, it was agreed to changing the Com-
pany name to be GB Auto. The update of the company’s name was approved in the commercial register on 23 May 2007.
The company is located in the Industrial Zone – Abou Rawash Kilo meter 28 Cairo – Alexandria Desert Road, Arab Republic of
Egypt.
The company and its subsidiaries (will be referred to as “the Group”) main activities include trading, distributing and marketing of
all transportation means including heavy trucks, semi trucks, passenger cars, buses, mini buses, micro buses, agriculture tractors,
pick-ups, mechanical tools equipment for sail movement and motors with their different structures and types whether locally
manufactured and imported (new and used ones) and trading in spare parts and accessories whether locally manufactured or
imported. The Group also undertakes import and export activities, trading agencies, selling locally manufactured and imported
products for cash, on credit or through finance leasing. The group also provides group transportation services and cargo services.
The major shareholders of the company are Dr. Raouf Ghabbour and his family who collectively owns approximately 61.64% of the
Company’s shares as at December 31, 2014.
The consolidated financial statements are approved for issuance by the Board of Directors on March 1, 2015.
2. Significant accounting policies
The principal accounting policies adopted in the preparation of these consolidated financial statements are summarized below.
A. Basis of preparation of consolidated financial statements
The consolidated financial statements have been prepared in accordance with Egyptian Accounting Standards (EAS) and appli-
cable laws and regulations. The consolidated financial statements have been prepared under the historical cost convention, as
modified by the revaluation of certain financial assets and liabilities at fair value through profit and loss.
The preparation of consolidated financial statements in conformity with Egyptian Accounting Standards requires the use of cer-
tain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates
that are significant to the consolidated financial statements are disclosed in Note (4).
EAS requires the reference to International Financial Reporting Standards (IFRS) when there is no EAS, or legal requirements
that explain the treatment of specific balances and transactions.
B. Basis of consolidation
(a) Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Group has the power to govern the fi-
nancial and operating policies generally accompanying a shareholding of more than one half of the voting rights. The
existence and effect of potential voting rights that are currently exercisable or convertible are considered when assess-
ing whether the Group controls another entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consol-
idated from the date that control ceases.
Ghabbour Auto | 2014 ANNUAL REPORT
54