NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:20 pm – mac5 – 3776 Section 10c : 3776 Section 10c22 Staff bonus sharesThe parent company operates a staff bonus shares scheme to reward the performance of itssenior executive employees. On 30 April 2003 the annual general assembly approved the issue ofbonus shares of KD500 thousand to the senior management of the parent company, to bedistributed over the period of five years according to the conditions and restrictions stipulated inthe staff incentive scheme. According to the scheme the shares are granted to the employees asbonus shares at Nil value.During the first quarter the parent company issued 5,000,000 shares to its senior management asbonus shares at nil value under its staff incentive scheme. The market value of these shares issuedamounted to KD2,325 thousand for which an expense was charged to the current year results witha corresponding increase in equity. Subsequently the nominal value of shares issued amountingKD500 thousand was credited to capital and the excess of KD1,825 thousand was credited to theshare premium account.23 ReservesGain onSale of Foreigntreasury currencyShare Statutory General Revaluation shares translationpremium11111reserve11111reserve11111reserve11111reserve11111reserve11111Total11111KD ‘000 KD ‘000 KD ‘000 KD ‘000 KD ‘000 KD ‘000 KD ‘000Balances at 31 December2003 .............................. 26,409 37,754 23,116 285 183 (791) 86,956Transfer of excessdepreciation .................. – – – (12) – – (12)Surplus on revaluation offreehold property .......... – – – 180 – – 180Currency translationdifferences .................... – – – 35 – 2,526 2,561Transfer on disposal ofsubsidiaries .................... – (901) (267) – – – (1,168)Transfer on disposal ofinvestment property ...... – – – (113) – – (113)Loss on sale of treasuryshares ............................ – – – – (183) – (183)Transfer to reserves .......... –111114,2461111161111111–11111–11111–111114,85711111Balances at 31 December2004 .............................. 26,409 41,099 23,460 375 – 1,735 93,078Transfer of excessdepreciation .................. – – – (11) – – (11)Currency translationdifferences .................... – – – (42) – (1,317) (1,359)Issue of staff bonus shares 1,825 – – – – – 1,825Transfer on disposal ofsubsidiaries .................... – (12) – – – – (12)Profit on sale of treasuryshares ............................ – – – – 236 – 236Transfer to reserves .......... –1111120,183111111,69911111–11111–11111–1111121,88211111Balances at 31 December2005 .............................. 28,234 1111161,270 1111125,159 11111322 11111236 11111418 11111115,63911111Statutory reserveIn accordance with the Commercial Companies Law and the parent company’s articles ofassociation, 10% of the profit for the year is to be transferred to statutory reserve. The parentcompany may resolve to discontinue such annual transfer when the reserve totals 50% of the paidup share capital. Distribution of the statutory reserve is limited to the amount required to enablethe payment of a dividend of 5% of paid-up share capital to be made in years when retainedearnings are not sufficient for the distribution of a dividend of that amount.F-72