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 88 37. Contingent liabilities and commitments Contingent liabilities 2018 2017 Acceptances and endorsements 78,081 62,824 Performance bid bonds 50,560 54,600 Customer claims 257,042 327,178 Guarantees and irrevocable letters of credit 740,458 820,707 1,126,141 1,265,309 The Group operates in certain countries which have tax regimes, but for which no provision for income tax has been recorded in these financial statements. It is believed that the Group’s potential tax liability arising in respect of its operations in those countries is remote at the present time. One of the subsidiaries which operates in Saudi Arabia is registered in the Commonwealth of the Bahamas and regulated by the Bahamian authorities. The Private offices of Late HRH Price Mohammad Al Faisal Al Saud (Ex- Chairman and major shareholder of DMIT) is the representative to market its investment products in Saudi Arabia. A potential risk of tax liability in Saudi Arabia is remote and no inquiries or notifications have been received from the authorities in Saudi Arabia. Therefore, no provision for tax has been recorded in these consolidated financial statements. Naseej B.S.C. (c) carried at 31 December 2018 contingent liabilities is nil (2017: USD 32.4 million), of which the Group’s share was nil (2017: USD 4.2 million). These related to guarantees and letters of credit issued as part of their normal banking operations. Sanpak Engineering carried at 31 December 2018 contingent liabilities of USD 0.7 million (2017: USD 0.7 million), of which the Group’s share was USD 0.1 million (2017: USD 0.1 million). These related to guarantees and letters of credit issued as part of their normal banking operations. The Group’s ownership of one of its investment properties, Al Khumrah land, is being disputed. Legal action is currently in process. Commitments 2018 2017 Undrawn facilities, financing lines 977,297 1,113,423 Other commitments to finance 5,199 18,960 Repurchase and resale transactions 444,086 297,331 1,426,582 1,429,714 Operating lease commitments Commitments for operating leases included cars and office equipment. The future minimum lease payments under non-cancellable operating leases are as follows: 2018 2017 Not later than one year - 4 Later than one year and not later than five years - 16 - 20 Significant net open foreign currency position 650,662 462,584