2008-Financial Report Dar Investment

8/6/2019 2008-Financial Report Dar Investment

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The Investment Dar Com pa ny K.S.C. (Closed )and its subsidiaries

State of Kuwait

Interim Condensed Consolidated Financial InformationFor the Nine Mo nths Ended 30 Sep tem ber 2008

withIndep end ent Aud itors Review Rep ort

(Unaudited)


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The Inve stment Dar Com pany - K.S.C. (Closed)and its subsidiaries

State of Kuwait

Interim Condensed Consolidated Financial InformationFor the Nine Mo nths Ended 30 Sep tem ber 2008

withIndep end ent Aud itors Review Rep ort

(Unaudited)

Contents Pages

Inde pe nde nt Aud itors' Review Rep ort

Interim Cond ensed Consolida ted Balanc e Sheet (unaudited) 1

Interim Cond ensed Consolida ted State ment of Inco me (unaudited) 2

Interim Co nd ensed Co nsolida ted Sta tem ent of Cha nge s in Equity (unaud ited ) 3-4

Interim Co nde nsed Co nsolida ted Sta tem ent of Ca sh Flows (unaud ited ) 5

Note s to the Interim Co nde nsed Co nsolida ted Financ ial Informa tion (unaud ited ) 6-16


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The Inve stme nt Dar Com pa ny - K.S.C. (Closed)and its subsidiaries

Interim Cond ensed Co nsolida ted Statem ent of Inc om eFor the nine m onths ende d 30 Sep tem be r 2008(Unaudited)(All am oun ts in Kuwa iti Dinars)

2

The ac c om pa nying notes from (1) to (23) form an integral pa rt of this interim co nde nsed c onsolidat ed financ ialinformation.

Three m onths ende d30 Sep temb er Nine months ende d30 Sep temb erNote 2008 2007 2008 2007

RevenueFinanc e inc ome 6,709,685 8,057,306 20,923,296 20,954,869Inve stm ent s (losses)/ inc om e 14 (4,771,630) 2,630,148 1,215,166 62,709,327Group s sha re in results of a ssoc iat es 8 61,284,340 31,886,419 162,906,734 67,985,375Investment services revenues 524,529 963,659 3,777,296 2,863,240Land and rea l estate revenues 15 1,768,517 9,768,723 17,273,112 29,335,576Foreign exchange (losses) / gains (1,239,105) 1,208,500 2,386,963 1,866,430Other inco me 131,116 509,344 2,653,805 2,477,555

64,407,452 55,024,099 211,136,372 188,192,372Expe nses and o ther cha rgesFinance c harges 20,352,385 16,893,374 54,800,670 44,842,000General and administrative expenses 5,552,664 4,715,384 15,368,717 14,277,174Provision fo r imp a irme nt 366,764 1,168,507 705,529 1,302,753Depreciation and am ortization 192,547 365,914 1,179,258 1,102,374Contribution to Kuwait Foundationfor the Adva nce ment of Sc iences

KFAS 428,641 252,940 675,811 939,957Na tiona l La bor Sup port Tax NLST 969,584 785,977 3,314,553 3,071,806Zakat expense 466,678 - 812,733 -

28,329,263 24,182,096 76,857,271 65,536,064

Net profit for the pe riod 36,078,189 30,842,003 134,279,101 122,656,308

Attributable to:

Sharehold ers of the Parent C om pa ny 36,172,520 30,571,939 132,119,113 122,099,476Minority interest (94,331) 270,064 2,159,988 556,832 36,078,189 30,842,003 134,279,101 122,656,308

Earnings pe r share a ttributa ble to theshareholders of the Parent company (fils)

16 38 . 34 32.17 139.81 129.01


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The Inve stme nt Dar Com pa ny - K.S.C. (Closed)and its subsidiaries

Interim Co nde nsed Consolida ted Statem ent of Cha nges in EquityFor the nine months ended 30 September 2008(Unaudited)(All am ounts in Kuwa iti Dinars)

3

Equity attributable to the sharehold ers of the Parent Com pa ny Share

capital(Note 11)

Sharepremium

Treasuryshares

(Note 12)

Reserves(Note 13)

Retainedearnings

Balance as of 1 January 2007 71,006,593 116,968,443 (9,794,002) 75,440,099 55,518,993 309,14Cha nge in fair value of investme nts av ailable for

sale -

- - 4,524,365 - Foreign currency translation reserve - - - (1,029,307) - Effec t o f ac quisition o f an a ssoc iate - - - (11,863,288) 6,038,140Ga in on sa le of t reasury sha res - - - 2,068,011 -

Zakat For year 2006 - - - (3,988,024) - Tota l (loss)/ profit rec og nized direct ly in eq uity - - - (10,288,243) 6,038,140Net profit for the period - - - - 122,099,476Tota l (loss)/ profit rec og nized d uring t he pe riod - - - (10,288,243) 128,137,616Ca sh d ividend s for yea r 2006 (Note 17) - - - - (34,948,837) Distribution o f b onus sha res for ye a r 2006(Note 17) 5,325,495 - - - (5,325,495)

Purcha se of trea sury sha res - - (15,359,149) - - Sa le of t rea sury sha res - - 22,893,399 - - Net mo vem ent on investme nts in subsidiaries - - - - - Bala nc e a s of 30 Sep tem be r 2007 76,332,088 116,968,443 (2,259,752) 65,151,856 143,382,277 399,574

The a c c om pa nying notes from (1) to (23) form an integ ral pa rt of this interim c ond ensed c onsolidat ed financ ial informa tion.


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The Investment Dar Com pa ny - K.S.C. (Closed)and its subsidiaries

Interim Co ndensed Co nsolida ted Statem ent of Cha nge s in Equity (Co nt.)For the nine months ended 30 September 2008(Unaudited)(All am ounts in Kuwa iti Dinars)

4

Equity attributable to the shareholde rs of the Parent Com pa ny Share

capital(Note 11)

Sharepremium

Treasuryshares

(Note 12)

Reserves(Note 13)

Retainedearnings

Balance as of 1 January 2008 76,332,088 116,968,443 (11,389,645) 75,205,217 115,115,427 Change in fair value of investments available

for sale - - - (15,128,739) - (

Foreign c urrenc y translat ion reserve - - - (26,074,564) -

Effec t o f ac quisition o f an a ssoc iate (Not e 8) - - - - 10,107,687

Ga in on sa le of t reasury sha res - - - 139,044 - Transfer to Za kat from sub sidiaries fo r yea r 2007 - - - - (2,127,155) Zakat for yea r 2007 - - - (4,182,996) - Actuarial surplus for an associate - - - 549,231 -

Tota l (loss) / profit rec og nized d irec tly in eq uity - - - (44,698,024) 7,980,532 (36Net profit for the period - - - - 132,119,113

Tota l (loss)/ profit rec og nized d uring t he pe riod - - - (44,698,024) 140,099,645

Cash dividends for year 2007 (Note17) - - - - (52,921,589) Distribution o f b onus sha res for ye a r 2007

(Note17) 19,083,022 - - - (19,083,022)

Purcha se of trea sury sha res - - (12,654,758) - - Sa le of t rea sury sha res - - 14,224,176 - - Net m ove me nt o f investme nts in subsidiaries - - - - - Bala nc e a s of 30 Sep tem be r 2008 95,415,110 116,968,443 (9,820,227) 30,507,193 183,210,461 416,280,

The a c c om pa nying notes from (1) to (23) form an integral pa rt of this interim c ond ensed c onsolida ted financ ial informa tion.


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The Inve stme nt Dar Com pa ny K.S.C. (Closed)and its subsidiaries

Notes to the Interim Cond ensed Consolidated Financ ial Information for the nine m onths ende d 30September 2008(Unaudited)(All am oun ts in Kuw aiti Dinars unless otherwise sta te d )

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1. Background

The Investm ent Dar Co mp any is a Closed Kuwa iti Sharehold ing C om pa ny ( The ParentCom pa ny) e sta blished in Kuwa it in 1994 and reg istered as an investme nt c om pa ny with theCe ntra l Ba nk of Kuw ait on 27 August 1995. The sha res of t he Parent C om pany we re listed o nKuw ait Sto c k Excha ng e in A pril 1999.

The Parent Co mp a ny s offic e is d om iciled in Sha rq, Bloc k 5, Building 2, Kuwa it Reinsuranc eTow er, Kuw ait.

The interim co nde nsed c onsolida ted financ ial informa tion c onsists of the fina nc ialinforma tion of t he Parent Com pa ny and its subsidiaries, (toge ther referred to a s theGroup).

The p rinc ipa l ac tivities of the Group a re Murab a ha investme nts with loc a l & foreign Islamicfinanc ial institutions, trad ing in land a nd rea l esta te a nd m ana ging financ ial portfolios andinvestme nt fund s for othe rs. The Group is also eng ag ed in selling a nd leasing o f mo torvehicles and real estate properties to consumers based on Musawama, Murabaha, Ijaraand Wakala c ontrac ts.

The a c tivities of the G roup a re ca rried o ut in ac c orda nc e w ith Nob le Islam ic Sha riaprinciples.

On 7 Ma y 2008, the G enera l Assem bly of t he Parent C om pa ny's shareho lders wa s held andthe consolidated financial statements for the year ended 31 December 2007 wereapproved.

The interim c ond ensed c onsolida ted financ ial informa tion w a s aut horized for issue b y theBoa rd o f Direc to rs on 2008.

2. Basis of prep aration o f the interim financ ial information

This interim c ond ensed c onsolida ted financ ial informa tion has be en prep a red inac co rda nce with International Ac c ounting Stand ard (34) Interim Financ ial Repo rting andthe Kuw ait Sto c k Excha ng e instruc tion No .2 of 1998.

The interim c ond ensed c onsolida ted financ ial informa tion do es not includ e all theinformation and disclosures required for complete financial statements prepared inac c ordanc e w ith International Financial Rep orting Sta nda rds as ad op ted in the Stat e o fKuwa it for fina nc ial institutions regulate d b y the C entral Ba nk of Kuwa it.

The p rovision for impa irme nt in financ e rec eivab le, with respe c t to spe c ific provision, isde termined a c c ording to t he requirem ents of the C entral Bank of Kuwa it. Furthermo re, theCe ntra l Ba nk of Kuwait requires a g ene ral provision of 1% for ca sh fac ilities and 0.5% for nonca sh fac ilities, also w aka la a nd a ll Muraba ha Investme nts plac ed with othe r tha n ba nks thatare not subjec t to spe c ific p rovision net of c ertain c a teg ories of c ollateral set b y the CentralBa nk of Kuwait .

In the opinion of management, all adjustments (consisting of normal recurring accruals)c onsidered nec essa ry for a fa ir presenta tion have be en include d in the interim c ond ensedco nsolida ted financ ial information.

The op erating results for the nine m onths ended 30 Sep tem ber 2008 are no t ne c essarilyindic ative of the results that ma y be expec ted for the yea r ending 31 Dec emb er 2008. Forfurther information, refer to the co nsolida ted financ ial stat eme nts and notes thereto for theyear ended 31 December 2007.


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The a c c ounting p olicies and method s of c omp utation used in the preparation of the interimcondensed consolidated financial information are consistent with those used in the

prepa ration o f the last a nnual co nsolida ted financ ial stat eme nts which w ere prepa red inac c ordanc e w ith International Financial Rep orting Stand ards as ado pte d in the Sta te o fKuwa it on financ ial institutions tha t a re subjec t fo r Central Bank o f Kuwa it.

3. Murab aha and Waka la investments

The a verag e e ffec tive rate of return on investme nt in Muruba ha a nd Waka la is 10.76 % as of30 Sep temb er 2008 (8.6% a s of 31 Dec em ber 2007 a nd 8.43% a s of 30 Sep temb er 2007).

4. Investments at fair value through profit or loss

30 Septe mb er2008

31 December 2007(Audited)

30 Septe mb er2007

Held for tra d ing investm ents 5,944,809 114,172 7,113,212 Investme nts d esigna ted a t fa ir va lue

throug h p rofit or loss a t inc ep tion 85,688,796 81,616,960 80,682,38191,633,605 81,731,132 87,795,593

Investme nts in loc a l sha res - quo te d 16,949,453 5,168,513 16,261,159 Investme nts in loc a l sha res - unq uo te d 6,465,362 13,457,708 12,848,890 Investm ent s in fo reign sha res -unq uo te d 634,980 634,980 634,980 Investme nts in loc a l funds - unq uo te d 62,251,155 62,469,931 58,050,564 Investm ent s in foreig n fund s - unq uot ed 5,332,655 - -

91,633,605 81,731,132 87,795,593

5. Investments ava ilable for sale30 Septe mb er

200831 December 2007

(Audited)30 Septe mb er

2007Investments in local shares - quoted 536,339 565,195 149,875,528Investments in local shares - unquoted 40,256,512 125,391,910 125,767,255Investm ent s in fo reign sha res -unquoted 925,584 2,887,246 2,893,497Investme nt in loc al fund s unq uote d 3,221,539 1,917,293 2,468,225Investme nts in loc al p ortfolios 11,183,208 11,183,451 11,122,115

56,123,182 141,945,095 292,126,620

5.1 Investm ent s ava ilab le for sa le inc lude an a mo unt of KD 1,839,721 a s of 30 Sep te mb er2008 (KD 128,279,156 as of 31 December 2007 and KD 128,382,051 as of 30 September2007) represents investments in unquoted shares carried at cost as it was not possible tode termine their fair va lues and there is no indic a tion of imp a irme nt in their va lue.

5.2 During the period end ed 30 Sep temb er 2008, The Group has rec lassified its investm ent inRehal Logistics Company from investments available for sale to investment in associate(Note 8.2), as the Group is exercising significant influence over the financial andoperating policies of this associate, through representation in the board of directors ofthis c omp any.


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pe rc entag e resulted from tha t a ct ion. Moreover, The Group p artic ipate d in the c ap italincrease of Aston Martin Holding in an amount KD 3,277,256 to reach an ownership

perc enta ge 56.21% as of 30 Sep te mb er 2008 (55.51% a s of 31 Dec em ber 2007). Thisincrease didn't result in a c ha nge in the assoc iate 's bo a rd o f direct ors and henc e TheGroup still exercise signific ant influenc e, b ut do n't exercise c ontrol ove r this assoc iate .

8.5 During the p eriod end ed 30 Sep tem be r 2008, the G roup ha s p articip a ted inincorpo rating ASMAR Limited in Jersey British C ha nnel Island s. The Group 's sha re in Asma rLimited is 57%. The G roup be lieves that it ha s signific ant influenc e rat her tha n a c ontrolover the financial and operational policies of the company; therefore, it is classified asan investme nt in assoc iate . During the pe riod e nde d 30 Sep tem be r 2008, the G roup ha srecorded KD 14,524,352 as its share of profit from this associate, which represents thepartial disposal of the associate's investment in its subsidiary company Aston MartinMidd le Ea st a nd North Afric a Limited . As of 30 Sep tem be r 2008, the a ssoc iate ha srecorded a receivable of KD 30,000,000 in respect of this partial disposal of its subsidiarywhich is due within the next three month as per the terms of the ag reem ent.

8.6 The G roup ha s rec orde d its share o f p rofit from a ssoc iate s am ount ing to KD 162,906,734 which includes an amount of KD 12,486,422 ba sed on a udited financ ial stat eme nts as of31 December 2007 which have been recorded in the three months period ended 31March 2008, and share of results in associates with an amount of KD 150,681,578 ha sbeen recognized based on reviewed financial information by associates independentaud itors a s of 30 Sep te mb er 2008, in ad d ition to sha re in losses of a ssoc iat es with a namount of KD 261,266 reco gnized ba sed on ma nagem ent ac counts provided byma nag em ent of the se c om pa nies as a t 30 Sep tem be r 2008.

8.7 The fo llow ing ta ble rep resent a summ ary of the Group 's share o f profit from a ssoc iate :

Companies Three m onths ende d30 Sep temb erNine months ende d

30 Septe mb er

2008 2007 2008 2007

Boub ya n Bank K.S.C.C . 1,104,314 - 3,803,085 -

Ba hrain Islamic Ba nk B.S.C. 1,707,363 - 8,975,910 2,439,691

Al Da r Nat iona l Rea l Esta te K.S.C.C. (1,324,160) - -702,588 -Oq yana Rea l Esta te C om pa ny K.S.C.C. (1,175,715) - 34,957,176 -Al-Bilad Rea l Esta te Investm en tCo mp a ny W.L.L. 47,364,752 29,899,655 69,385,246 64,669,637

Aston M artin Holding W.L.L. 262,639 - 6,567,164 -

Ma na zel Holding Co mp any K.S.C.C. 411,665 221,305 4,579,031 221,305

Khab ari Hold ing C om pa ny K.S.C.C. (855,120) 1,487,291 1,638,063 340,827Park Lane Properties Limited CompanyW.L.L. - - 17,530,509 -

ASMAR Limited 14,524,352 - 14,524,352 -

Other (735,750) 278,168 1,648,786 313,915

61,284,340 31,886,419 162,906,734 67,985,375

8.8 The G roup 's sha re of p rofit from A l-Bila d Rea l Esta te, O qyana Rea l Esta te a nd Pa rk LaneProperties were mainly originated from the valuation of the Investment Properties ofthese c omp anies ba sed on va luation repo rts from indepe ndent valuators in Kingd om ofBahra in, United Arab Emirates and United Kingd om respe c tively.


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9. Property a nd Equipm entDuring the p eriod end ed 30 Sep tem be r 2008, the Group ha s ac quired a p rivate a irc raft withan a mo unt o f KD 6,641,258 through a subsidiary co mp a ny wo rking in the avia tion industry.

10. Murabaha and Wakala paya bles

10.1 This represents Murab aha and Wakala c ontrac ts whic h ma ture over a p eriod of threemo nths to four yea rs. The a vera ge effe c tive yield rate is 8.53 % as of 30 Sep temb er 2008(8.30% as of 31December 2007 and 8.20% as of 30 September 2007).

10.2 Subseque nt to the ba lance sheet d ate , out of the tota l outsta nding Murab aha pa yab leba lanc e o f KD 974,350,031, The G roup ha s repa id KD 95,123,844 and ha s ob ta inedrenew a l for an amo unt o f KD 477,624,001.

10.3 The a verag e yield ra tes of Murab aha and Wakala a re in line with the ma rket rate s.

10.4 Due to the international financial crisis that took place recently and its subsequentimpacts which led to shortage of liquidity in the money market, the Group as similar toinvestm ent c om pa nies is c urrently nego tiat ing t he restructure of its lia bilities.

11. Share c ap ital

The g eneral a ssemb ly held on 7 May 2008 ap proved the prop osal o f the Boa rd of Direc tors ofthe Parent co mp a ny to increa se the Parent c om pa nys c a pita l by issuing bo nus shares of25%. Ac c ordingly, the issued a nd pa id up c a pita l am ounts to KD 95,415,110 distribut ed ove r954,151,095 sha res as of 30 Septe mber 2008 (KD 76,332,088 distributed over 763,320,876 sha resas of 31 Dec em ber 2007 and a s of 30 Sep temb er 2007).

On 21 May 2008 the share c a pita l inc rea se w a s registered in the c om me rcial register.

12. Trea sury sha res

30 Sep temb er2008

31 Decemb er2007

30 Septe mb er2007

Numb er o f t reasury sha res (Sha re) 14,097,720 12,860,676 3,803,176Treasury sha res to to ta l sha re c ap ita lratio (%) 1.48 1.68 0.50Ma rket value 10,291,336 12,860,676 4,031,367


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13. Reserves

Statutoryreserve

VoluntaryReserve

GeneralReserve

Change infair valuereserve

Foreigncurrency

translationreserve

Gain onsale o f

treasuryshares

Actuarialreserve

Total

Balanc e a s of 1 January2007 24,019,950 24,019,950 15,000,000 11,536,921 675,143 188,135 - 75,440,099

Chang e in fair value - - - 4,524,365 - - - 4,524,365Foreign currency

translation reserve - - - - (1,029,307) - - (1,029,307)Effec t of a cq uisition o f an

associate - - - (11,863,288) - - - (11,863,288)Ga in on sa le of t reasury

shares - - - - - 2,068,011 - 2,068,011

Zakat for year 2006 - (3,988,024) - - - - - (3,988,024)Balanc e a s of 30

September 2007 24,019,950 20,031,926 15,000,000 4,197,998 (354,164) 2,256,146 - 65,151,856

Balanc e a s of 1 January

2008 37,044,566 37,044,566 15,000,000 (1,666,938) (14,531,494) 2,314,517 - 75,205,217

Cha nge in fair value - - - (15,128,739) - - - (15,128,739)

Foreign currencytranslation reserve - - - - (26,074,564) - - (26,074,564)

Ga in on sa le of t reasuryshares - - - - - 139,044 - 139,044

Zakat for year 2007 - (4,182,996) - - - - - (4,182,996)Surplus in ac tua ria l reserve - - - - - - 549,231 549,231

Balanc e a s of 30September 2008 37,044,566 32,861,570 15,000,000 (16,795,677) (40,606,058) 2,453,561 549,231 30,507,193

14. Investments (losses)/ inco meThree m onths ended

30 Sep temb erNine months ende d

30 Sep temb er2008 2007 2008 2007

(Losses)/ ga ins on sa le o f investm ent s a tfa ir va lue throug h p rofit or loss (362,647) 817,705 (236,346) 2,681,924

Cha nge in fair value o f investm ents atfair value through profit or loss * (6,406,614) 522,241 (2,029,039) 5,622,769

Divid ends 159,256 1,072,094 1,815,136 1,872,168Ga in on sale o f investme nts ava ilab le

fo r sa le 2,042,051 95,221 2,054,461 1,085,279(Loss)/ ga in on d isposa l of sub sid ia ries (14,610) 194,591 (22,267) 50,630,563(Loss)/ ga in on d isposa l of a ssoc ia te s (189,066) - (188,392) 888,328Imp a irme nt losses - (71,704) (178,387) (71,704)

(4,771,630) 2,630,148 1,215,166 62,709,327

*Change in fair value of investments at fair value through profit or loss includes anamount of KD 683,688 for the period ended 30 September 2008 (KD 4,800,665 for thepe riod end ed 30 Sep tem be r 2007) pertaining to unq uote d fund s. Their fair value ha sbee n de termined ba sed on the net a sset va lue for the p eriod ende d 30 Sep temb er 2008.


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e Inve stme nt Dar Com pa ny K.S.C. (Closed)d its subsidiaries

otes to the Interim Conde nsed Consolida ted Financ ial Informa tion for the nine m onths ended 30 Septe mb er 2008naudited)ll am oun ts in Kuwa iti Dinars unless ot herwise sta te d )

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18. Segment distribution

The G roup c arries out the ma jority of its ac tivities in the Sta te of Kuwa it through three m a jor seg me nts:

1. Financ ing seg me nt: rep resents financ ing c onsume rs and c om p anies with a ll of the ir misc ellaneo us nee d s ac c ording to c ontrac ts cSha ria p rinc iples.

2. Rea l esta te seg me nt: rep resents selling land and prop erties for trading o r after de velop me nt in ca sh or unde r Istisna a c ontrac ts.

3. Investment segment: represents management of real estate portfolios and investment funds on behalf of third parties and investments.

Ana lysis of the informa tion a c c ording t o seg me nts for the nine-mont h pe riod end ed 30 Sep tem be r is a s follows:

Financ e Rea l Estate Investment Unallo c ate d i2008 2007 2008 2007 2008 2007 2008

Segm ent revenues 25,964,064 23,935,858 17,273,112 29,335,576 167,899,196 134,920,938 -

Seg me nt expe nses (9,858,006) (8,723,861) (5,610,994) (9,095,244) (55,864,898) (42,602,821) (5,523,373) (5,114,

Seg me nt results 16,106,058 15,211,997 11,662,118 20,240,332 112,034,298 92,318,117 (5,523,373) (5,114,1

Seg me nt a sset s 297,366,198 126,281,004 170,341,990 109,575,882 971,722,581 1,004,034,899 90,260,686 53,214,0

Seg me nt liab ilities - - - - - - 1,077,380,397


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e Inve stme nt Dar Com pa ny K.S.C. (Closed)d its subsidiaries

otes to the Interim Conde nsed Consolida ted Financ ial Informa tion for the nine m onths ended 30 Septe mb er 2008naudited)ll am oun ts in Kuwa iti Dinars unless ot herwise sta te d )

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18. Seg me nt distribution (c ontinued)

Ana lysis of the informa tion a c c ording t o seg me nts for the three -m onth p eriod end ed 30 Sep tem be r is as follow s:

Financ e Rea l Estate Investment Unallo c ate d i2008 2007 2008 2007 2008 2007 2008

Segm ent revenues 5,601,696 11,474,028 1,768,517 9,768,723 57,037,239 33,781,348 -

Seg me nt expe nses (3,448,282) (5,079,406) (988,360) (3,583,715) (22,294,153) (14,114,143) (1,598,468) (1,404,

Seg me nt results 2,153,414 6,394,622 780,157 6,185,008 34,743,086 19,667,205 (1,598,468) (1,404,


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Notes to the Interim Cond ensed Consolida ted Financ ial Information for the nine m onths ende d 30 Septe mb er2008(Unaudited)(All am oun ts in Kuwa iti Dinars unless ot herwise stat ed )

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19. Geographical concentration of assets and liabilitiesAssets Liabilities

30 Sep tem be r2008

31 December2007

30 Sep tem be r2007

30 Sep tem be r2008

31 December2007

30 Sep tem be r2007

Kuwait 952,989,046 875,228,951 906,539,753 413,788,530 661,018,912 667,435,795

Other GCC 396,043,681 266,183,239 227,551,247 493,838,988 101,682,197 96,749,202

Europe 177,329,140 138,216,861 156,444,533 147,406,342 99,182,809 92,564,887

Others 3,329,588 2,613,323 2,570,326 22,346,537 10,105,560 -

1,529,691,455 1,282,242,374 1,293,105,859 1,077,380,397 871,989,478 856,749,884

20. Related pa rties transac tions

Related parties represent the Groups shareholders who have representation in the Board ofDirec tors, mem be rs of t he Board o f Direc tors, Senior Ma na ge me nt a nd assoc iate s. In the no rma lcourse of business and on approval of the Groups management, the Group entered intotransac tions with relate d pa rties d uring the pe riod end ed 30 Sep tem be r 2008. The signific antrelated pa rty transac tions and outstand ing ba lances relating to these related pa rties are a sfollows:

Three m onths ended30 Sep temb er

Nine months ende d30 Sep temb er

2008 2007 2008 2007Transac tionsFinanc e c osts 78,124 1,538,541 4,069,917 2,022,292Purc ha ses for resa le - 2,318,346 400,655 3,187,438Exec utive and senior manag eme nt

benefits 605,118 50,277 1,333,500 812,522Ca sh dividend s rece ived - (862,577) (851,676) (862,577)

Balances 30 Sep temb er200831 Dec emb er

200730 Septe mb er

2007Investme nts a t fa ir value t hrough

profit or loss 64,863,448 60,797,770 55,155,855Finance rec eivables 14,364,961 20,975,120 -Other deb it ba lanc es 2,671,200 9,103,332 3,170,755Murabaha payables (8,147,806) (52,943,944) (45,852,369)Paya bles and other credit balanc es (2,325,150) (6,832,919) (10,531,267)

All related parties transactions are subject to the approval of the shareholders in the GeneralAssembly.


20/20


Notes to the Interim Cond ensed Consolida ted Financ ial Information for the nine m onths ende d 30 Septe mb er2008(Unaudited)(All am oun ts in Kuwa iti Dinars unless ot herwise stat ed )

21. Capital c ommitments30 Septe mb er

200831 Dec emb er

200730 Septe mb er

2007Unc a lled c a pita l insta llmen ts on

investment companies 1,520,000 240,000 240,000Gua rantee a ga inst the uncovered

po rtion of Q ard Hassan d ue toAston M artin Holding C omp any - 16,718,683 -

1,520,000 16,958,683 240,000

22. Off balance sheet items

The Group m ana ge s po rtfolios on b eha lf of othe rs, whic h are not include d in the ba lanc e sheetof t he Group . The ne t a ssets mana ge d on be ha lf of ot hers am ounte d to KD 561,362,367as of 30Sep te mb er 2008 (KD 252,416,423 as of 31 Dec em ber 2007 and KD 268,732,342 as of 30 Sep te mb er2007), out of w hich a n a mo unt o f KD 141,819,542 as of 30 Sep temb er 2008 for rela ted pa rties (KD172,265,464 a s a t 31 Dec em ber 2007, KD 133,539,332 a s of 30 Sep te mber 2007).

23. Comp arative figures

Certain c om pa rative figures have be en reclassified to c onform to the c urrent presenta tion of theinterim c ond ensed c onsolida ted financ ial informa tion as at 30 Sep tem be r 2008.

Documents

2008-Financial Report Dar Investment