79 / 87
Notes to the Consolidated Financial Statements
(Thousands of US dollars)
77
Dar Al-Maal Al-Islami Trust
Annual Report 2014
36. Related party
transactions and
balances
(continued)
37. Contingent liabilities
and commitments
b) Loans to employees
All employees of the Group are entitled to receive employee loans on favourable
terms not equivalent to those of transactions made on an arm’s length
basis. Included in accounts receivable are amounts due from employees at
31 December 2014 of $19.9 million (2013: $22.0 million).
c) Current and investment accounts
Associated companies
Period ended
2014
2013
Amounts payable to:
Faisal Islamic Bank of Egypt
-
20,000
Naseej B.S.C. (c)
98,252
260,342
d) Key management compensation
2014
2013
Salaries and other short term benefits
15,396
16,277
Post-employment benefits
687
600
Other long term benefits
362
1,966
16,445
18,843
Related party transactions, balances and other relevant disclosures with IICG
FUM are disclosed in Note 15, Note 19, Note 22 and Note 34.
2014
2013
Contingent liabilities
Acceptances and endorsements
103,910
125,327
Performance bid bonds
26,123
26,233
Customer claims
447,984
430,128
Guarantees and irrevocable
letters of credit
734,321
584,245
1,312,338 1,165,933
Customer claims include a net claim amounting to $59.2 million (2013: $55.2
million) for which litigation has been filed against the Group and the counter
claim and litigation filed by the Group against the counterparty in connection
with a real estate transaction. The case is currently under court proceedings and
the ultimate outcome cannot presently be determined. The Group’s management
is vigorously contesting the litigation and based on the advice received from
its external legal counsel, the Group believes that it has strong grounds to
successfully defend against this claim. Accordingly, no provision for this claim
has been made in the consolidated financial statements.