2012 Annual Report - Financial Statements (English) - Khaleeji ...

KHALEEJI COMMERCIAL BANK BSCNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 31 December 2012 | BD 000’s23. RELATED PARTY TRANSACTIONS (continued)2011 Associates KeymanagementpersonnelSignificantshareholders /entities in whichdirectors areinterestedAssets undermanagement(includingspecial purposeentities)TotalIncomeManagement fees - - - 618 618Income from financing assets andassets acquired for leasing91 - - 548 639Income from investment securities - - - 243 243Share of losses from associates (1,226) - - - (1,226)ExpensesReturn to investment account holders 2 5 13 402 422Expenses on placements fromfinancial institutions- - 53 - 53Staff cost - 862 - - 862Other expenses - - - 11 11Impairment allowances - - - 795 79524. EARNINGS PER SHAREBasic earnings per share is calculated by dividing the profit for the year by the weighted average number of equity shares outstanding duringthe year. The Bank has dilutive equity instruments in the form of share grants in issue.Basic EPS 2012 2011Profit for the year (BD 000’s) 751 518Weighted average number of equity shares (Nos. in 000’s) 1,122,963 1,116,785Basic earnings per share (in fils) 0.67 0.46Diluted EPS 2012 2011Profit for the year (BD 000’s) 751 518Weighted average number of equity shares (Nos. in 000’s) 1,122,963 1,116,785Diluted earnings per share (in fils) 0.67 0.46During the period, all outstanding unvested share awards were fully vested and hence, there are no outstanding potentially dilutiveinstruments (refer note 20).25. SHARI’A SUPERVISORY BOARDThe Bank’s Shari’a Supervisory Board consists of three Islamic scholars who review the Bank’s compliance with general Shari’a principlesand specific fatwas, rulings and guidelines issued. Their review includes examination of evidence relating to the documentation andprocedures adopted by the Bank to ensure that its activities are conducted in accordance with Islamic Shari’a principles.26. ZAKAHZakah is directly borne by the shareholders on distributed profits and investment account holders. The Bank currently does not collect orpay Zakah on behalf of its shareholders and investors in restricted investment accounts. Zakah payable by the shareholders is computedby the Bank on the basis of the method prescribed by the Bank’s Shari’a Supervisory Board and notified to shareholders annually. Duringthe year, the Shari’a Supervisory Board has computed Zakah payable of BD 1,903 thousand (2011: BD 1,853 thousand) of which BD 228thousand (2011: BD 214 thousand) represents the Zakah computed on the cumulative statutory reserve and retained earnings as at 31December 2012, payable by the Bank (refer note 32). The remaining Zakah balance amounting to BD 1,675 thousand or 2.485 fils per share(2011: BD 1,639 thousand or 1.420 fils per share) is due and payable by the shareholders.42Annual Report 2012