NIG Prospectus - London Stock Exchange

More documents

Recommendations

Info

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:20 pm – mac5 – 3776 Section 10c : 3776 Section 10cValuation of unquoted equity investmentsValuation of unquoted equity investments is normally based on one of the following:• recent arm’s length market transactions;• current fair value of another instruments that is substantially the same; or• the expected cash flow discounted at current rates applicable for items with similar termsand risk characteristics;• other valuation models.The determination of the cash flows and discount factors for unquoted equity investmentsrequires significant estimation. There are certain investments where this estimation cannot bereliably determined and as a result available for sale investments with a carrying amount ofKD26,261 thousand (2004: KD5,718 thousand) are carried at cost.Impairment of goodwillThe group determines whether goodwill is impaired at least on an annual basis. This requires anestimation of the value in use of the cash generating units to which the goodwill is allocated.Estimating the value in use requires the group to make an estimate of the expected future cashflows from the cash generating unit and also to choose a suitable discount rate in order tocalculate the present value of those cash flows. Note 9 contain the information about theassumptions and their risk factors relating to goodwill impairment.Pension liabilities/assetPension assumptions are detailed in note 31 and the pension expense for the year is sensitive tosuch assumptions and to the basis and period of spreading the actuarial deficit.Cash and cash equivalentsCash and cash equivalents included in the consolidated statement of cash flows consist of bankbalances and cash, due to banks and short-term deposits maturing within three months from thedate of inception.F-63
Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:20 pm – mac5 – 3776 Section 10c : 3776 Section 10c3 Investment in subsidiariesThe significant consolidated subsidiaries of the parent company as at 31 December 2005 and2004 are as follows:Country ofPercentageregistration11111111ownership1111111111200511112200411112% %NI Group (Bahrain) EC .......................................... Bahrain 100 100NIC Holdings (Guernsey) Limited ........................ Guernsey 100 100<strong>NIG</strong> (Guernsey) Limited........................................ Guernsey 100 100NIC Holdings (UK) Plc .......................................... United Kingdom 100 100BI Group Plc ........................................................ United Kingdom 100 100Noor Financial Investment Company– KSC (Closed) ................................................ Kuwait 51 52Ikarus Industrial Petroleum Company– SAK (Closed) [formerly National Companyfor Cement Industries – SAK (Closed)] ............ Kuwait 100 100National Company for Ready Mix Concrete– SAK (Closed) ................................................ Kuwait 100 100National Land Transport Company – SAK (Closed) Kuwait 100 100Luluat Al Nasrullah Trading Company – WLL........ Kuwait 100 100National Industries Company for BuildingMaterials – SAK (Closed).................................. Kuwait 74 74Denham Investment LTD .................................... Cayman Islands 80 –a. <strong>NIG</strong> (Guernsey) Limited is the ultimate European holding company of the UK trading groupand owns 100% of NIC Holdings (UK) Plc which in turn owns 100% of BI Group Plc.b. Certain minority shareholdings in the above subsidiary companies are held on behalf of theparent company by third party nominees.c. During the year the group established Denham Investment LTD, to primarily acquire 28.6%of “Karachi Electric Supply Corporation Ltd – Pakistan”, through a special purpose entity,incorporated in the Cayman Islands named KES Power LTD (see note 11 b).4 Income from investments200511112200411112KD ‘000 KD ‘000Dividend income:– From investments at fair value through statement of income................ 7,720 4,939– From available for sale investments........................................................ 2,477 2,335Profit on sale of available for sale investments .......................................... 13,793 12,000Impairment in value of available for sale investments................................ (999) (914)Reversal of impairment in value of available for sale investments ............ – 3,666Income from investments at fair value through statement of income ...... 148,163 31,801Income from wakala investment ................................................................ 236 –Interest income .......................................................................................... 1,6191111219011112173,009 54,01711112 1111211112 11112F-64
Page 1 and 2:
Level: 8 - From: 8 - Thursday, Augu
Page 3 and 4:
Page 5:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19:
Page 22:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115: Level: 8 - From: 8 - Thursday, Augu
show all

NIG Prospectus - London Stock Exchange

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?