2011 Annual Report - Khaleeji Commercial Bank BSC

KHALEEJI COMMERCIAL BANK BSC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December 2011
BD 000’s
23. RELATED PARTY TRANSACTIONS (continued)
Transactions with restricted investment accounts
Transactions involving transfer/sale of assets to restricted investment accounts are generally executed based on the preagreed
values as per the terms of the contracts for each restricted investment product. During the year, in its normal course
of business, the Bank has bought certain investments at agreed contractual values amounting to BD 1,240 thousands. In 2010,
the Bank had sold certain investments at agreed contractual values amounting to BD 167 thousand to its restricted investment
accounts at a profit of BD 55 thousand.
24. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the profit for the year by the weighted average number of equity shares
outstanding during the year. The Bank has dilutive equity instruments in the form of share grants in issue.
Basic EPS 2011 2010
Profit / (loss) for the year (BD 000’s) 518 (6,533)
Weighted average number of equity shares (Nos. in 000’s) 1,116,785 1,113,440
Basic earnings per share (in fils) 0.46 (5.87)
Diluted EPS 2011 2010
Profit / (loss) for the year) (BD 000’s) 518 (6,533)
Weighted average number of equity shares (Nos. in 000’s) 1,116,785 1,113,440
Diluted earnings per share (in fils) 0.46 (5.87)
As the average market value of shares during the current year was lower than the assumed issue price of shares under the
Scheme (refer to note 20), the share awards are not considered to be dilutive for the purpose of computing earnings per share.
25. SHARI’A SUPERVISORY BOARD
The Bank’s Shari’a Supervisory Board consists of three Islamic scholars who review the Bank’s compliance with general Shari’a
principles and specific fatwas, rulings and guidelines issued. Their review includes examination of evidence relating to the
documentation and procedures adopted by the Bank to ensure that its activities are conducted in accordance with Islamic
Shari’a principles.
26. ZAKAH
Zakah is directly borne by the shareholders on distributed profits and investment account holders. The Bank currently does
not collect or pay Zakah on behalf of its shareholders and investors in restricted investment accounts. Zakah payable by the
shareholders is computed by the Bank on the basis of the method prescribed by the Bank’s Shari’a Supervisory Board and notified
to shareholders annually. During the year, the Shari’a Supervisory Board has computed Zakah payable of BD 1,853 thousand
(2010: BD 2,506 thousand) of which BD 214 thousand (2010: BD 250 thousand) represents the Zakah computed on the
cumulative statutory reserve and retained earnings as at 31 December 2011, payable by the Bank (refer to note 32). The remaining
Zakah balance amounting to BD 1,639 thousand or 1.42 fils per share (2010: BD 2,256 thousand or 1.95 fils per share) is due and
payable by the shareholders.
27. SEGMENT REPORTING
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the Group’s chief operating decision maker (Board of Directors)
to make decisions about resource allocation to each segment and assess its performance and for which discrete financial
information is available. An operating segment is divided into business segment and geographic segments. For management
purposes, the Group is organised into two major business segments:
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Annual Report 2011