Jordan National Shipping Lines : Financial Report English 2022

JORDAN NATIONAL SHIPPING LINES COMPANY (A PUBLIC LIMITED SHAREHOLDING COMPANY)

AQABA SPECIAL ECONOMIC ZONE - JORDAN

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

DECEMBER 31, 2022

TOGETHER WITH THE INDEPENDENT

AUDITOR'S REPORT

JORDAN NATIONAL SHIPPING LINES COMPANY (A PUBLIC LIMITED SHAREHOLDING COMPANY)

AQABA SPECIAL ECONOMIC ZONE - JORDAN

DECEMBER 31, 2022

TABLE OF CONTENTS
	Page
Independent Auditor's Report
Consolidated Statement of Financial Position	5
Consolidated Statement of Profit or Loss	6
Consolidated Statement of Comprehensive Income	7
Consolidated Statement of Changes in Owners' Equity	8
Consolidated Statement of Cash Flows	9
Notes to Consolidated Financial Statements

Deloitte & Touche (ME) Jordan

Jabal Amman, 5th Circle

Amman 11118, Jordan

Tel: [phone]

Fax: [phone]

www.deloitte.com

Independent Auditor's Report

AM / 000744

To the Shareholders of

Jordan National Shipping Lines Company

(A Public Limited Shareholding Company)

Aqaba Special Economic Zone - Jordan

Opinion

We have audited the consolidated financial statements of Jordan National Shipping

Lines Company and its subsidiaries (The ) which comprise of the consolidated statement of financial position as of December 31, 2022, and the consolidated statements of profit or loss and other 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 of December 31, 2022, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting

Standards .

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those standards are furtherly described in the 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 Code of Ethics for Professional Accountants together with the other ethical requirements that are relevant to our audit of the Group ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independent Auditor's Report (continued)

Jordan National Shipping Lines Company

For the Year Ended December 31, 2022

Key Audit Matter

Key audit matters are those matters that, in our professional judgment, were most significant in our audit of the consolidated financial statements of the current year. These 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.

audit of the consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements.

For each matter below, our description of how our audit addressed the matter provided in that context:

Key Audit Matter

Accuracy of Sea Freight and Cruising Vessels Revenue

Revenue from sea freight and cruising vessels represents a major part of the Group's revenue, and is recognized when the related service is completed. This is the point at which the right to return becomes unconditional, as only time passes and rendering the service before payment is due.

The amount of revenue recognized is based on the fair value of the amounts received or receivable (net of discounts, if any) as per the agreement with the customer or agency company and excludes amounts collected on behalf of others.

We have determined that accuracy of maritime agency revenue is a key audit matter, given its significance in size and the level of judgements made and estimates applied in the measurement of its amount.

Scope of audit to address risk

Our audit procedures included, but were not limited to, the following:

We obtained an understanding of the operation and industry of the Group and assessed the policies and procedures over the measurement of sea freight and cruising vessels revenue and determined if the relevant controls over the accuracy of such revenue had been

appropriately designed and implemented.

We agreed the method of calculation of the amount of the revenue recognized to the details as per the agreements with customers and reperformed the mathematical accuracy of the calculation of revenue recognized, on a sample basis. We discussed significant judgements applied and estimations made in the determination of the

revenue recognized with management and assessed if these judgments and estimates were reasonable by comparing them to supporting documentation.

We assessed the disclosure in the consolidated financial statements, relating to this matter, against the requirements of IFRSs.

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Independent Auditor's Report (continued)

Jordan National Shipping Lines Company

For the Year Ended December 31, 2022

Other Matter

The accompanying consolidated financial statements are a translation of the statutory consolidated financial statements in the Arabic language to which reference should be made.

Other Information

Management is responsible for the other information. The other information comprises the other information in the annual report excluding the consolidated

to be made available to us after the date of our audit report.

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 so doing, 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.

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 for such internal control as management determines 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 Groupg 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 cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group reporting process.

Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due

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 skepticism 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 sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentations, or the override of internal control.

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