DMIT_Annual_Report_2018_EN

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 83 34. Funds under management Islamic Investment Company of the Gulf (Bahamas) Limited (“IICG”), a subsidiary of the Group, as the Fund Manager, manages Funds Under Management (FUM) totalling US Dollars 2.09 billion (2017: US Dollars 2.1 billion) of which US Dollars 1.76 billion (2017: US Dollars 1.79 billion) has been marketed in Saudi Arabia by the Private Offices of His Royal Highness Late Prince Mohamed Al Faisal Al Saud. In February 2016, IICG 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. As a part of winding up of the operations, IICG’s management recognises that claims may be initiated against IICG by investors who are unlikely to recover the full value of their investments. As of the date of these financial statements, two hundred thirty investors (2017: two hundred twenty two) have filed legal claims in Saudi Arabian courts against IICG claiming refund of the full value of their investments totalling to USD 76.8 million (2017: USD 71.4 million). Of the two hundred thirty legal cases, the court has rendered judgment in one hundred and ten legal claims (2017: fifteen) amounting to US Dollars 32 million (2017: US Dollars 2.5 million). The Company has challenged such judgments in the Appeal Court. The Appeal Court has rendered its judgement in three cases amounting to US Dollars 0.3 million (2017: 0.2 million). IICG has challenged the judgement of the Appeal Court in the Royal Court. IICG’s Management believes that the risk of loss arising from these or similar claims attaching to the IICG’s FUM activities is less than probable because of the uncertainty surrounding the interpretations of the underlying agreements used for FUM activities. The value of future claims of similar nature cannot be reasonably estimated. Therefore, IICG does not carry any provision for any such claims. In addition, based on an external lawyer’s confirmation, management believes that the courts in Saudi Arabia lacks jurisdiction as any cases need to be filed in the courts of Bahamas (the country of incorporation of the Company). The value of future claims of similar nature cannot be reasonably estimated. Therefore, the Company does not carry any provision for any such claims. 35. Retirement benefit plans With effect from 31 December 2018, DMIT had no full time staff, and all staff benefits were fully settled before 31 December 2018. DMIT entered into a contract with a labour supplier for supply of few part time staff. Similarly, all obligations under the DMI retirement pension fund were full settled and a release from obligation towards the pension fund has since been obtained. The Group has a set retirement benefit plan. The assets of the funded plans are held in separate trustee administered funds. These plans are valued by independent actuaries every year using the projected unit credit method. For the other subsidiaries within the Group, defined contribution plan applies. The table below outlines the group’s post-employment amounts and activity included in the financial statements. 2018 2017 Balance sheet obligations for pension benefits - (448) Income statement charge for pension benefits - (2,369) Remeasurements for pension benefits - (4,045) Deficit of funded plans - (448) Liability in the balance sheet - (448)