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:
| 2020 | 2019 | |
| AED | AED | |
| Premium and insurance balances receivables | ||
| Shareholder | ||
| Finance House PJSC | 816,813 | 2,396,175 |
| Others | ||
| Finance House LLC | 72,390 | 230,372 |
| Abdul Hamid Umer Taylor | 1,840 | |
| Mohamed Abdulla Jumaa Al Qubaisi | – | 1,601 |
| Finance House PJSC on behalf of Finance House
Securities LLC |
– |
128,709 |
891,043 |
2,756,857 |
|
| Insurance and other payables | ||
| Shareholder | ||
| Finance House PJSC | 5,200,000 | – |
| Others | ||
| FH Capital | 572,447 | 1,000,000 |
| Finance House Securities LLC |
962 |
– |
5,773,409 |
1,000,000 |
|
| Investments | ||
| Shareholder | ||
| Finance House PJSC – Sukuks | 6,950,000 | 6,950,000 |
| Finance House PJSC – Quoted investments in equity | 4,157,360 | 3,172,122 |
| Others | ||
| Finance House Securities LLC – Commercial papers |
5,000,000 |
2,000,000 |
16,107,360 |
12,122,122 |
|
| Cash and cash equivalents | ||
| Shareholder | ||
| Cash at bank – call account | 7,211,257 | 6,663,241 |
| Cash at banks – current accounts | 94,687 | 15,070,652 |
| Others | ||
| Cash at banks – current accounts |
668,973 |
416,749 |
7,974,917 |
22,150,642 |
|
| Tier 1 capital | ||
| Others | ||
| Abdul Hamid Umer Taylor | 2,000,000 | 2,000,000 |
| Abdulmajeed Al Fahim |
500,000 |
500,000 |
2,500,000 |
2,500,000 |
Finance House P.J.S.C is one of the major shareholders of the company as of 31 December 2020. FH Capital, Finance House Securities L.L.C and Finance House LLC 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:
| 2020 | 2019 | |
| AED | AED | |
| Finance House PJSC | ||
| Management fee | 5,200,000 | 2,800,000 |
| Gross premiums written | 4,007,808 | 5,226,860 |
| Fixed deposits placed | 89,000,000 | 15,000,000 |
| Fixed deposits redeemed | 69,000,000 | 15,000,000 |
Purchase of Sukuk |
– |
1,100,000 |
| Finance House Securities | ||
| Disposal of shares | 14,086,596 | 8,444,655 |
| Purchase of shares | 2,997,765 | 11,187,699 |
| Interest on investment in commercial paper | 137,271 | 100,625 |
| Gross premiums written | 300,433 | 291,797 |
| Fixed deposits placed | 30,000,000 | – |
| Fixed deposits redeemed |
20,000,000 |
– |
| Finance House LLC | ||
| Interest on investment in sukuks | 521,250 | 474,875 |
| Interest on Wakala fixed deposit | 423,028 | – |
| Gross premium written |
171,170 |
– |
|
FH Capital |
||
| Consultancy fees |
572,447 |
1,000,000 |
| Board of directors | ||
| Remuneration |
1,450,000 |
839,000 |
| Gross premiums written | ||
| Mohamed Abdulla Jumaa Al Qubaisi | 134,354 | 121,714 |
| Emirates National Holding LLC | – | 107,066 |
| Finance House LLC |
171,170 |
269,544 |
