DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 82 35. Retirement benefit plans (continued) The Group has not changed the processes used to manage its risks from previous periods. The Group does not use derivatives to manage its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets in 2017 are managed by an insurance company, although the Group also invests in property and cash. Expected contributions to post-employment benefit plans for the year ending 31 December 2018 are USD 0.3 million (2017: USD 0.5 million). The weighted average duration of the defined benefit obligation is 5.5 years (2016: 9.1 years). The expected maturity analysis of undiscounted pension benefits at 31 December 2017 was: Less than a year (USD) Between one to two years (USD) Between three to five years (USD) Over five years (USD) Total (USD) Undiscounted pension benefits 271 11,540 1,382 2,332 15,525 36. Related party transactions and balances Related parties include equity participation holders, directors, associated companies and other companies, whose ownership and management is common with DMI or its subsidiaries and associates. A number of transactions are entered into with related parties in the normal course of business. These include loans, current and investment accounts. Transactions and balances disclosed as with associated companies are those with companies in which DMI owns 20% to 50% of the voting rights and over which it exerts significant influence, but does not have control. The volumes of related party transactions, outstanding balances at the year end, and relating income and expense for the year are as follows. a) Loans to key management personnel 2016 2016 Loans Loans outstanding at 1 January 1,107 852 Loans issued during the year 1,378 561 Loan repayments during the year (891) (307) Foreign exchange (44) 1 Loans outstanding at 31 December 1,550 1,107 No provisions were recognised in respect of loans given to related parties (2016: USD Nil). Loans advanced to key management personnel bear no return and are unsecured. 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 2017 of USD 23.6 million (2016: USD 23.1 million).