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20. Massaref accounts
(continued)
21. Provisions
22. Collateralised
borrowings
23. Net trading income
24. Income from
investments in
financings
64
Dar Al-Maal Al-Islami Trust
Annual Report 2011
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Thousands of US dollars)
Due to banks and financial institutions include deposits totalling $885.5 million
(2010: $878.1 million) from three counterparties having contractual maturity
ranging from one month to 3 years. Out of these, deposits totalling $649.8
million (2010: $649.2 million) are from two counterparties which are subject
to freeze and originating from jurisdiction under US and UN sanctions.
Due to banks include short and medium term borrowings by the Group under
bilateral and multilateral arrangement with maturities ranging from one year to
five years.
Included under liabilities are provisions of $55.0 million (2010: $55 million)
relating to a guarantee issued to certain funds under management, and $18
million (2010: $23.0 million) relating to a specific asset risk. Included under
expenses at 31 December 2011 is a reversal of $22.2 million and a charge of
$8.7 million (2010: charge $35.0 million) of provisions relating to project
receivables, which is included under receivables (note 9), and a reversal of
$5.0 million related to specific risk in 2010.
Financial assets pledged to secure liabilities:
At 31 December 2011, there were collateralised borrowings in aggregate
$177.6 million (2010: $188.8 million).
Cash dividends amounting to $13.8 million (2010: $3.8 million) on certain
shares pledged as collateral was directly received by the lender during the year
and adjusted against the outstanding facility amount as per the agreed terms.
Assets, which are pledged as collateral, are conducted under terms that are
usual and customary to standard lending and securities borrowing and lending
activities.
2011
2010
Income from foreign exchange trading
9,853
4,427
Gains/(losses) on trading securities
7,802
(3,335)
Gains from revaluation
6,751
7,265
24,406
8,357
Foreign exchange trading includes gains and losses from spot and forward
contracts translated from foreign currency assets and liabilities.
2011
2010
Income from investments in financings
259,093
142,450
Present value adjustment
-
4,986
Provision for bad and doubtful debts
(42,124)
(23,021)
Reversal of provision for bad and
doubtful debts
36,246
-
253,215
124,415
Included in the present value adjustment in 2010 is an upward adjustment of
$5.2 million which represents the credit required to adjust the carrying value of
the Kard Hassan, which was retired in full on 28 June 2010 (note 7).