NOTES TO FINANCIAL STATEMENT
Related parties
Related parties comprise the major Shareholders, the Board of Directors and key management personnel of the Company and those entities in which they have the ability to control or exercise significant influence in financial and operation decisions. The transactions with these related parties are primarily financing in nature as follows:
| 2019 | 2018 | |
| AED | AED | |
| Premium and insurance balances receivables | ||
| Shareholder | ||
| Finance House PJSC | 2,396,175 | 2,657,453 |
| Others | ||
| Islamic Finance House PVT JSC | 230,372 | 410,465 |
| Mohamed Abdulla Jumaa Al Qubaisi | 1,601 | – |
| Finance House PJSC on behalf of Finance House
Securities LLC |
128,709 |
8,558 |
2,756,857 |
3,076,476 |
|
| Insurance and other payables | ||
| Shareholder | ||
| Finance House PJSC | – | 2,800,000 |
| Others | ||
| CAPM Investment P.S.C | 1,000,000 | 274,856 |
1,000,000 |
3,074,856 |
|
| Investments | ||
| Shareholder | ||
| Finance House PJSC – Sukuks | 6,950,000 | 5,850,000 |
| Finance House PJSC – Quoted investments in equity | 3,172,122 | 3,588,458 |
| Others | ||
| Finance House Securities LLC – Commercial papers | 2,000,000 | 2,000,000 |
12,122,122 |
11,438,458 |
|
| Cash and cash equivalents | ||
| Shareholder | ||
| Cash at banks – current accounts | 15,070,652 | 224,101 |
| Cash at bank – call account | 6,663,241 | 3,962,763 |
| Others | ||
| Cash at banks – current accounts | 416,749 | 383,911 |
22,150,642 |
4,570,775 |
|
| Tier 1 capital | ||
| Others | ||
| Abdul Hamid Umer Taylor | 2,000,000 | – |
| Abdulmajeed Al Fahim | 500,000 | – |
2,500,000 |
– |
Finance House P.J.S.C is one of the major shareholders of the company as of 31 December 2019. CAPM Pr.JSC Investment P.S.C, Finance House Securities L.L.C and Islamic Finance House PVT. J.S.C are subsidiaries of Finance House P.J.S.C.
The Company, in the normal course of business, collects premiums from and settles claims of other businesses that fall within the definition of related parties as contained in IFRS.
The following are the details of significant transactions with related parties:
| 2019 | 2018 | |
| AED | AED | |
| Finance House PJSC | ||
| Purchase of investment property | – | 40,000,000 |
| Fixed deposits placed | 15,000,000 | 30,000,000 |
| Fixed deposits redeemed | 15,000,000 | 30,000,000 |
| Gross premiums written | 5,226,860 | 5,658,534 |
| Purchase of Sukuk | 1,100,000 | 750,000 |
| Management fee | 2,800,000 | 2,800,000 |
Interest on investment in sukuks |
474,875 |
411,385 |
| Finance House Securities | ||
| Purchase of shares | 11,187,699 | 22,388,421 |
| Disposal of shares | 8,444,655 | 9,364,891 |
| Interest on investment in commercial paper | 100,625 | 94,827 |
Gross premiums written |
291,797 |
351,256 |
| CAPM Investment PSC | ||
| Consultancy fees |
1,000,000 |
390,571 |
| Board of directors | ||
| Remuneration |
839,000 |
730,000 |
| Gross premiums written | ||
| Mohamed Abdulla Jumaa Al Qubaisi | 121,714 | 115,626 |
| Emirates National Holding LLC | 107,066 | 203,601 |
| Islamic Finance House |
269,544 |
341,663 |
