ASTRA INDUSTRIAL GROUP COMPANY AND ITS …

1 ASTRA INDUSTRIAL GROUP COMPANY AND ITS. subsidiaries . (A Saudi Joint Stock COMPANY ). INTERIM CONDENSED CONSOLIDATED FINANCIAL. STATEMENTS (UNAUDITED). 31 MARCH 2017. ASTRA INDUSTRIAL GROUP COMPANY AND ITS subsidiaries . (A Saudi Joint Stock COMPANY ). INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. FOR THE THREE-MONTH PERIOD ENDED 31 MARCH 2017. INDEX PAGE. Independent Auditors' Review Report 1. Interim Condensed Consolidated Statement of Income 2. Interim Condensed Consolidated Statement of Comprehensive Income 3. Interim Condensed Consolidated Statements of Financial Position 4-5. Interim Condensed Consolidated Statements of Changes in Equity 6. Interim Condensed Consolidated Statement of Cash Flows 7. Notes to the Interim Condensed Consolidated Financial Statements 8 52. ASTRA INDUSTRIAL GROUP COMPANY and Its subsidiaries (A Saudi Joint Stock COMPANY ). Notes to the interim condensed consolidated financial statements 31 March 2017. 1 ORGANIZATION AND ACTIVITIES.

2 ASTRA INDUSTRIAL GROUP COMPANY (the COMPANY ) is a Saudi Joint Stock COMPANY licensed under foreign investment license number 030114989-01 issued in Riyadh by Saudi Arabian General Investment Authority (SAGIA) and operating under commercial registration number 1010069607 issued in Riyadh on 9 Muharram 1409H (22 August 1988). The address of the GROUP 's head office is as follows: ASTRA INDUSTRIAL GROUP Box 1560. Riyadh 11441. Kingdom of Saudi Arabia (KSA). The GROUP is engaged in the following activities: a) Building, managing, operating and investing in INDUSTRIAL plants after obtaining approvals from the Saudi Arabian General Investment Authority (SAGIA) for each project. b) The wholesale and retail trade in clothing, towels, blankets, fertilizers, animal feed, insecticides, irrigation equipment, agricultural machinery and equipment, greenhouses, agricultural and animal products and gardening contracts. The principal activities of the subsidiaries are as follows: Production, marketing and distribution of medicine and pharmaceutical products.

3 Production of polymer compounds, plastic additives, color concentrates and other plastic products. Metal based construction of INDUSTRIAL buildings and building frames. Production of compounded fertilizers and agriculture pesticides and the wholesale and retail trading of fertilizers, forages and insecticides. Also, execution of agricultural projects contracts. Production of steel pallets and steel rebar and generation of the required power of such activity. Exploration of all ores and minerals in all regions of the Kingdom of Saudi Arabia except for those land and marine areas that ate out of the scope of application of the mining investment regulations as stipulated in Article (8) of the said regulation. 2 SIGNIFICANT ACCOUNTING POLICIES. Statement of compliance These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard (IAS), Interim Financial Reporting ( IAS 34 ) as endorsed in KSA.

4 These are also the GROUP 's first interim condensed consolidated financial statements in accordance with International Financial Reporting Standards ( IFRS ), for part of the period covered by the first annual financial statements prepared in accordance with IFRS. endorsed in KSA and other standards and pronouncements that are issued by the Saudi Organization for Certified Public Accountants ( SOCPA ) (collectively referred to IFRS as endorsed in KSA ), and accordingly IFRS 1 First-time Adoption of International Financial Reporting Standards endorsed in KSA has been applied. Refer to Note 4 for further information. The interim condensed consolidated financial statements do not include all the information and disclosures required in annual financial statements to be prepared in accordance with IFRS as endorsed in KSA, which would be prepared for the year ending 31 December 2017. These interim condensed consolidated financial statements have been prepared under the historical cost convention.

5 The interim condensed consolidated financial statements are presented in Saudi Riyals and all values are rounded to the nearest one Saudi Riyal, except when otherwise indicated. Results for the interim reporting period are not necessarily indicative of future periods. 8. ASTRA INDUSTRIAL GROUP COMPANY and Its subsidiaries (A Saudi Joint Stock COMPANY ). Notes to the interim condensed consolidated financial statements (continued). 31 March 2017. 2 SIGNIFICANT ACCOUNTING POLICIES (continued). Basis of consolidation The subsidiary companies incorporated into these interim condensed consolidated financial statements are as follows: Percentage of ownership (directly or Country of indirectly). Subsidiary COMPANY incorporation %. 31 31 1. March December January 2017 2016 2016. Tabuk Pharmaceutical Manufacturing COMPANY ( TPMC ) Kingdom of Saudi Arabia 100 100 100. TPMC has the following subsidiaries : - Tabuk Pharmaceutical Research COMPANY Kingdom of Jordan 100 100 100.

6 - Tabuk Pharmaceutical COMPANY Limited Republic of the Sudan 100 100 100. - Tabuk Pharmaceutical Manufacturing COMPANY Arab republic of Egypt 100 100 100. - Tabuk Eurl Algeria People's Democratic 100 100 100. Republic of Algeria - Al Bareq Pharmaceutical Manufacturing Factory COMPANY Limited Kingdom of Saudi Arabia 100 100 100. ASTRA Polymer Compounding COMPANY Limited ( Polymer ) Kingdom of Saudi Arabia 100 100 100. Polymer has the following subsidiaries : - ASTRA Polymers free zone Imalat Sanayi Ve Ticaret Anonim Republic of Turkey 100 100 100. Sirketi. - ASTRA Polymer Pazarlama San. Ve Tic. A. Republic of Turkey 100 100 100. - ASTRA Specialty Compounds India Private Limited Republic of India 100 100 100. International Building Systems Factory COMPANY Limited Kingdom of Saudi Arabia 100 100 100. ( IBSF ). IBSF has the following subsidiary: - ASTRA Heavy Industries Factory Limited ( AHI ) Kingdom of Saudi Arabia 100 100 100. ASTRA INDUSTRIAL Complex Co.

7 Ltd. for Fertilizer and Kingdom of Saudi Arabia 100 100 100. Agrochemicals ( AstraChem ). AstraChem has the following foreign subsidiaries : - AstraChem Saudia People's Democratic 100 100 100. Republic of Algeria - AstraChem Morocco Kingdom of Morocco 100 100 100. - Aggis International Limited British Virgin Islands 100 100 100. - AstraChem Turkey Republic of Turkey 100 100 100. - AstraChem Syria Syrian Arab Republic 100 100 100. - AstraChem Tashqand Republic of Uzbekistan 100 100 100. - ASTRA INDUSTRIAL Complex Co. Ltd. for Fertilizer and Kingdom of Jordan 50 50 50. Agrochemicals, Jordan - ASTRA Nova, Turkey Republic of Turkey - AstraChem Ukraine Ltd. Ukraine 100 100 100. 9. ASTRA INDUSTRIAL GROUP COMPANY and Its subsidiaries (A Saudi Joint Stock COMPANY ). Notes to the interim condensed consolidated financial statements (continued). 31 March 2017. 2 SIGNIFICANT ACCOUNTING POLICIES (continued). Basis of consolidation (continued). Subsidiary COMPANY Country of Percentage of ownership (directly or incorporation indirectly).

8 31 31 1. March December January 2017 2016 2016. - AstraChem Saudi Jordan Co. Arab republic of Egypt 100 100 100. - ASTRA Agricultural Saudi Jordan Co. Arab republic of Egypt 100 100 100. ASTRA INDUSTRIAL Complex for Fertilizers and Agrochemicals and Sultanate of Oman 99 99 99. Investments Green Highland Seeds COMPANY Limited - Jordon Kingdom of Jordan 100 100 100. ASTRA Energy LLC ( ASTRA Energy ) Kingdom of Jordan ASTRA Energy has the following subsidiary: 76 76 76. - Fertile Crescent for Electricity Generation COMPANY Republic of Iraq 100 100 100. ASTRA Mining COMPANY Limited ( ASTRA Mining ) Kingdom of Saudi Arabia 60 60 60. The interim condensed consolidated financial statements comprise the financial statements of the COMPANY and its subsidiaries as at 31 March 2017. Control is achieved when the GROUP is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

9 Specifically, the GROUP controls an investee if, and only if, the GROUP has: Power over the investee ( , existing rights that give it the current ability to direct the relevant activities of the investee). Exposure, or rights, to variable returns from its involvement with the investee The ability to use its power over the investee to affect its returns Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the GROUP has less than a majority of the voting or similar rights of an investee, the GROUP considers all relevant facts and circumstances in assessing whether it has power over an investee, including: The contractual arrangement(s) with the other vote holders of the investee Rights arising from other contractual arrangements The GROUP 's voting rights and potential voting rights The GROUP re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

10 Consolidation of a subsidiary begins when the GROUP obtains control over the subsidiary and ceases when the GROUP loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the period are included in the interim condensed consolidated financial statements from the date the GROUP gains control until the date the GROUP ceases to control the subsidiary. 10. ASTRA INDUSTRIAL GROUP COMPANY and Its subsidiaries (A Saudi Joint Stock COMPANY ). Notes to the interim condensed consolidated financial statements (continued). 31 March 2017. 2 SIGNIFICANT ACCOUNTING POLICIES (continued). Basis of consolidation (continued). Income and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the GROUP and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Financial statements of subsidiaries are prepared using accounting policies which are consistent with those of the GROUP .