NOTES TO FINANCIAL STATEMENT
Related party balances and transactions
|
(Restated) |
||
|
31 December 2023 |
31 December 2022 |
|
|
AED |
AED |
|
| Premium and insurance balances receivables | ||
| Shareholder | ||
| Finance House P.J.S.C |
3,495,990 |
4,245,137 |
| Fellow subsidiaries | ||
| Finance House L.L.C |
382,833 |
15,933 |
| Finance House Securities L.L.C. |
240,291 |
10,248 |
|
|
4,119,114 |
4,271,318 |
|
|
||
| Other receivables | ||
| Shareholder | ||
| Finance House P.J.S.C |
34,596,019 |
– |
| 34,596,019 |
– |
|
| Insurance and other payables | ||
| Shareholder | ||
| Finance House P.J.S.C | 12,000,000 | 12,000,000 |
| Fellow subsidiaries | ||
| FH Capital P.S.C | 1,453,798 | 2,047,973 |
| Finance House Securities L.L.C. | 37,135 | – |
| 13,490,933 | 14,047,973 | |
| Investments | ||
| Shareholder | ||
| Finance House PJSC – Sukuks
Fellow subsidiary |
6,950,000 | 6,950,000 |
| Finance House Securities LLC – Commercial papers | – | 7,000,000 |
| 6,950,000 | 13,950,000 | |
| Cash and cash equivalents | ||
| Shareholder (Finance House PJSC) | ||
| Cash at banks – current accounts | 434,558 | 173,177 |
| Cash at bank – call account | 16,757,447 | 9,113,164 |
| Cash at banks – fixed deposit | – | 14,000,000 |
| Fellow subsidiaries | ||
| Finance House Securities LLC – Commercial papers | 7,000,000 | – |
| Finance House L.L.C.- Cash at banks – current accounts | 119,253 | 119,353 |
| 24,311,258 | 23,405,694 | |
| (Restated) | ||
|
31 December 2023 |
31 December 2022 |
|
| Tier 1 capital | AED | AED |
| Board member | ||
| Abdulmajeed Al Fahim | 500,000 | 500,000 |
| 500,000 | 500,000 | |
Capital, Finance House Securities L.L.C and Finance House L.L.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:
| (Restated) | ||
| 31 December 2023 |
31 December 2022 |
|
| AED | AED | |
| Finance House P.J.S.C | ||
| Sale of land and building | 34,596,019 | – |
| Gross premiums written | 4,122,875 | 4,460,256 |
| Interest on fixed deposit | 185,597 | 461,676 |
| Management fee | 6,000,000 | 6,000,000 |
| Interest on Sukuk | 423,203 | – |
| Finance House Securities | ||
| Purchase of shares | 55,500 | 17,131,776 |
| Disposal of shares | 39,628,212 | 31,019,074 |
| Gross premium written | 438,532 | 405,230 |
| Interest on investment in commercial paper | 277,687 | 237,339 |
| Finance House L.L.C | ||
| Gross premiums written | 366,900 | 177,305 |
| Interest on investment in Sukuks | 423,926 | |
| FH Capital | ||
| Service fees | 755,796 | 703,797 |
| Board of directors | ||
| Remuneration | – | 856,796 |
31 December 2022 |
31 December 2021 |
|||||||
| Less than one year | More than one year | No maturity date | Total | Less than one year | More than one year | No maturity date | Total | |
| AED | AED | AED | AED | AED | AED | AED | AED | |
| ASSETS | ||||||||
| Property and equipment | – | – | 43,010,347 | 43,010,347 | – | – | 43,261,817 | 43,261,817 |
| Investments carried at fair value through other
comprehensive income (FVTOCI) |
37,947,355 | 2,555,227 | – | 40,502,582 | 48,285,714 | 3,011,000 | – | 51,296,714 |
| Investments carried at fair value through
profit and loss (FVTPL) |
6,948,829 | 7,000,000 | – | 13,948,829 | 7,249,031 | 5,000,000 | – | 12,249,031 |
| Statutory deposit | – | 6,000,000 | – | 6,000,000 | – | 6,000,000 | – | 6,000,000 |
| Premium and insurance balances receivable | 149,636,812 | – | – | 149,636,812 | 101,172,076 | – | – | 101,172,076 |
| Reinsurance share of outstanding claims | 102,577,633 | – | – | 102,577,633 | 77,279,041 | – | – | 77,279,041 |
| Other receivables and prepayments | 48,225,047 | – | 48,225,047 | 48,225,047 | 25,542,510 | – | – | 25,542,510 |
| Fixed deposits | 14,000,000 | – | – | 14,000,000 | 14,000,000 | – | – | 14,000,000 |
| Cash and cash equivalents |
41,930,903 |
– |
– |
41,930,903 |
54,857,557 |
– |
– |
54,857,557 |
| TOTAL ASSETS |
401,266,579 |
15,555,227 |
91,235,394 |
459,832,153 |
328,385,929 |
14,011,000 |
43,261,817 |
385,658,746 |
31 December 2022 |
31 December 2021 |
|||||||
| Less than one year | More than one year | No maturity date | Total | Less than one year | More than one year | No maturity date | Total | |
| AED | AED | AED | AED | AED | AED | AED | AED | |
| LIABILITIES | ||||||||
| End of service benefits obligation | – | 3,208,318 | – | 3,208,318 | – | 2,883,016 | – | 2,883,016 |
| Insurance and other payables | 106,239,096 | – | – | 106,239,096 | 69,390,241 | – | – | 69,390,241 |
| Unearned premium reserve | 112,656,717 | – | – | 112,656,717 | 81,376,611 | – | – | 81,376,611 |
| Claims under settlement reserve | 52,137,577 | – | – | 52,137,577 | 51,604,276 | – | – | 51,604,276 |
| Incurred but not reported claims reserve | 36,186,621 | – | – | 36,186,621 | 28,869,141 | – | – | 28,869,141 |
| Unexpired risk reserve | 568,447 | – | – | 568,447 | 252,338 | – | – | 252,338 |
| Unallocated loss adjustment expenses reserve | 2,776,442 | – | – | 2,776,442 | 2,256,963 | – | – | 2,256,963 |
| Total liabilities | 310,564,900 | 3,208,318 | – | 313,773,218 | 202,371,128 | 2,883,016 | – | 236,632,586 |
