IIG Prospectus - London Stock Exchange

International Investment Group CompanyK.S.C. (Closed)Notes to the Interim Condensed Financial Statements - 31 March 2007(Unaudited)2. Basis of preparation ( Cont’d)The interim condensed financial statements were prepared in accordance with thesame accounting policies and methods of computation followed in the latest annualfinancial statements which were prepared in accordance with the InternationalFinancial Reporting Standards as adopted for use in the State of Kuwait.3. Murabaha & Wakhala investmentsThis balance represents contract of investments in Murabaha & Wakhala due in oneyear. The effective rate of return is 7.3% as of 31 March 2007 (6.8% as of 31 December2006, 31 March 2006).4. Accounts receivable31 March200731December2006(Audited)31 March2006Margin deposit for letters of guarantee 5,753,000 6,271,334 856,000Due from related parties 6,147,885 3,450,150 6,390,106Trade receivables (Net) 795,167 681,005 1,348,927Accrued income 1,525,830 198,004 216,124Prepaid expenses 48,478 39,330 20,168Other debit balances 22,397 15,012 8,67014,292,757 10,654,835 8,839,995* This represents restricted mounts at one of the local banks against letters of guaranteeissued to others (Note 16).5. Available for sale investments31 March200731 December2006(Audited)31 March2006Investment in quoted shares - 3,557,200 -Investments in unquoted shares 24,324,274 24,549,585 5,234,466Investments in funds 816,234 3,911,909 2,052,75825,140,508 32,018,694 7,287,224Investments in unquoted shares include investments with an amount of KD 560,777 as of31 March 2007 (KD 951,091 as of 31 December 2006 and KD 113,952 as of 31 March 2006)carried at cost less impairment losses.Investments in unquoted shares include investments with an amount of KD 23,763,497measured at fair values which are determined by reference to the most recent prices oftransactions took place over these investments.6F-8