DMIT_Annual_Report_2018_EN

Dar Al-Maal Al-Islami Trust 12 Independent auditor’s report to the Holders of Equity Participations of Dar Al-Maal Al-Islami Trust (continued) Report on the audit of the consolidated financial statements (continued) Emphasis of matter In February 2016, Islamic Investment Company of the Gulf (Bahamas) Limited (“IICG”), a subsidiary of the Group communicated to its investors in Saudi Arabia that it intended to wind up IICG’s Funds Under Management (“FUM”) in Saudi Arabia as the regulator, Capital Markets Authority (“CMA”), declined to grant any exemptions with respect to the registration and transfer of such FUM to a CMA registered subsidiary of IICG. The FUM has commenced distribution of the disposal proceeds of the underlying assets to the investors as and when such proceeds are realised. The final liquidation proceeds will only be known upon completion of the liquidation process which may take several years. IICG management recognises that claims may be initiated against IICG by investors who are unlikely to recover the full value of their investments. As at 31 December 2018, such claims aggregating US Dollars 76.8 million have been filed by investors against IICG. IICG’s management is contesting the validity and jurisdiction of such claims and potential losses from such claims have been disclosed in Note 34 as a contingent liability. However, the value of future claims of a similar nature cannot be reasonably estimated. Our opinion is not modified in respect of this matter. Other information The Board of Supervisors are responsible for the other information. The other information comprises the chairman’s message (but does not include the consolidated financial statements and our auditor’s report thereon) which we obtained prior to the date of this auditor’s report, and the Report of the Religious Board which is expected to be made available to us after that date. Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, 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. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the Report of the Religious Board, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of the Board of Supervisors and those charged with governance for the consolidated financial statements The Board of Supervisors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as the Board of Supervisors determine is 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, the Board of Supervisors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s financial reporting process.