Annual Report 2024

Dar Al-Maal Al-Islami Trust NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2024 in thousands of USD 55 37. Related party transactions and balances (continued) 31 December 2023 Subsidiaries & Affiliates Associates and other investments Directors and related entities Senior Management Total Assets Investment in associates - 94,659 - - 94,659 Other assets - - - 146 146 Liabilities Due to customers - 832 - - 832 Due to banks and other financial institutions - 13,009 - - 13,009 Account payables 21,198 - - - 21,198 Income Share of loss of associate companies - (2,425) - - (2,425) Profit paid to financial and non-financial institutions (821) - - (821) Expenses Staff costs - - - (497) (497) General and administrative expenses - - (151) (696) (847) 38. Contingent liabilities and commitments Contingent liabilities 2024 2023 Endorsements 86,350 46,785 Performance bid bonds 52,366 35,247 Customer claims 14,795 104,286 Guarantees and irrevocable letters of credit 519,746 431,306 673,257 617,624 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 Prince 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. There are certain claims filed by the borrowers against the banking subsidiary in Pakistan – Faysal Bank Limited (“FBL”). These mainly represent counter claims filed by the borrowers for restricting FBL from disposal of assets (such as mortgaged/pledged assets kept as security), cases where FBL was proforma defendant for defending its interest in the underlying collateral kept by it at the time of financing, certain cases filed by ex- employees of FBL for damages sustained by them consequent to the termination from FBL’s employment and cases for damages towards opportunity losses suffered by the customers due to non-disbursements of running finance facility as per the agreed terms. The above suit filed against FBL for declaration, recovery of monies, release of securities, rendition of account and damages. Based on legal advice and/or internal assessment, management is confident that the above matters will be decided in FBL's favor and the possibility of any outcome against FBL is remote and accordingly no provision has been made in these consolidated and financial statements.