Dubai Investments Annual Report 2012

Annual
Report
2012
PJSC
PJSC
Annual
Report
2012
Contents
Directors Report --------------------------------------------------------------
Page
1-2
Consolidated Financial Statements

Independent Auditors Report ----------------------------------------
Consolidated Income Statement -------------------------------------
Consolidated Statement of Comprehensive Income ---------------
Consolidated Statement of Financial Position ----------------------
Consolidated Statement of Cash Flows -----------------------------
Consolidated Statement of Changes in Equity ----------------------
8-9
Notes -------------------------------------------------------------------
10-51
Annual Corporate Governance Report --------------------------------------
52-63
Corporate Social Responsibility Report ------------------------------------
64-70
PJSC
Directors Report
Directors Report (continued)

Directors:
The Board of Directors comprises:
The Board of Directors (the Board) of Dubai Investments PJSC (the Company) is pleased to present their report along with
the audited financial statements of the Company and its subsidiaries (the Group) for the year ended 31 December 2012.
Financial Performance:
The Group has reported net profit attributable to the shareholders of the Company of AED 321.4 million for the year ended
31 December 2012 as compared to AED 203.4 million in the previous year. The increase in profits of AED 118 million over
the previous year is attributable to the growth in the regional and local economies which has led to improved performance
in the investment and real estate sector.
Mr. Sohail Faris Ghanim Al Mazrui

Mr. Hussain Sultan

Mr. Ali Fardan Al Fardan
Mr. Mohammed Saif Al Ketbi
Mr. Khalid Jassim Kalban
Chairman
Vice-Chairman
Auditors:
During the year 2012, the Group successfully divested its shareholding in five entities. The divestment has resulted in
unlocking the investment value and has provided an opportunity to make new investments and diversify investment base.
KPMG were appointed the auditors of Dubai Investments PJSC for the year ended 31 December 2012. Based on
the recommendation of the Audit Committee, Directors propose to re-appoint KPMG as auditors for the year ending
31 December 2013. KPMG are eligible for re-appointment and have expressed their willingness to continue in office.
Total assets of the Group stands at AED 13.0 billion as of 31 December 2012 (2011: AED 13.5 billion).
Acknowledgements:
Proposed Appropriations:
The Board of Directors would like to express their gratitude and appreciation to all its shareholders, clients and business
partners whose continued support has been a source of great strength and encouragement.
The Board of Directors would also like to place on record their commendation of the efforts of the Group management
The Directors propose the following appropriations from the Companys retained earnings:
and their staff for their loyalty, perseverance and hard work that has been put by them for the benefit of the Company and

its shareholders.

AED000

On behalf of the Board
-
Transfer to legal reserve

Transfer to general reserve
Proposed dividend
Directors fees
44,572
44,572
249,928
4,000
Proposed Dividend:
Sohail Faris Ghanim Al Mazrui

Chairman
Dated: 27 March 2013
The Directors propose a cash dividend of 7% to the shareholders of the Company.
Outlook 2013:
Outlook for the year 2013 is encouraging with indicators reflecting return of confidence to the UAE market. The economy
is showing significant signs of growth and is expected to continue its expansion on the back of several new projects and
initiatives that have recently been announced.
Due to overall financial recovery across the globe, stock exchanges in UAE and other GCC countries have gained
momentum. The management is monitoring the situation and appropriate actions are being taken to maximize returns
and unlock value.
In 2013, the Group has plans for further divestments which are expected to provide significant returns.
PJSC
Dubai Investments PJSC and its subsidiaries

Consolidated income statement
for the year ended 31 December
Note
Sale of goods and services
Contract revenue
Sale of properties
Rental income
Gain on fair valuation of investment properties
Gain/(loss) on fair valuation of investments
Gain on sale of investments - (net)
Dividend income
12
Total income
Direct operating costs
Administrative and general expenses
Finance expenses
Finance income
Other income
6
7
8
8
9
Profit for the year

Profit attributable to:
Owners of the Company
Non-controlling interests
Profit for the year
Earnings per share
Basic earnings per share (AED)
31
2012
AED000
2011
AED000
1,400,125
432,054
116,461
497,042
151,167
14,957
14,987
14,862
-----------2,641,655
1,322,684
551,444
59,335
457,364
159,259
(44,476)
2,598
13,571
------------2,521,779
(1,733,148)
(490,576)
(225,970)
12,535
54,027
----------258,523
======
(1,743,520)
(520,662)
(182,452)
17,668
64,842
----------157,655
======
321,372
(62,849)
----------258,523
======
203,388
(45,733)
----------157,655
======
0.09
===
0.06
===
The notes set out on pages 10 to 51 form part of these consolidated financial statements.
The independent auditors report is set out on page 3.
PJSC
Consolidated statement of comprehensive income
Consolidated statement of financial position
2012
AED000
Profit for the year

Other comprehensive income:
Net change in fair value of investments at fair value through other
comprehensive income (OCI) (refer note 14)
Total other comprehensive income for the year
Total comprehensive income for the year
258,523
2011
AED000
157,655
(50,522)
(31,992)
---------
----------
Owners of the Company

Assets
Non-current assets
Property, plant and equipment and biological assets
Goodwill and intangible assets
Investment properties
Development properties
Investments at fair value through other comprehensive income
Investment in an associate
Long term rent receivable
Long term finance lease receivable
Inventories
Trade receivables
Other receivables
(50,522)
(31,992)
----------
208,001
125,663
Total non-current assets
======
======
270,850
171,396
Current assets
Inventories
Investments at fair value through profit or loss
Trade receivables
Other receivables
Cash at bank and in hand
(62,849)
(45,733)
---------
-----------
208,001
======
125,663
======
31 December
2011
AED000
10
11
12
13
14
15
16
17
18
19
20
2,625,305
147,445
4,253,207
51,294
440,245
2,576
66,143
13,841
1,269,777
226,252
156,056
-----------9,252,141
------------
2,769,017
217,436
3,977,154
80,670
492,086
2,576
94,926
15,834
1,287,894
226,146
45,640
------------9,209,379
------------
18
14
19
20
21
993,217
600,991
1,195,917
511,349
480,740
-----------3,782,214
-----------13,034,355
========
1,088,161
796,686
1,342,208
772,609
287,280
------------4,286,944
------------13,496,323
========
25
25
27
26
27
28
29
25
30
3,570,395
46
564,724
25,502
875,475
67,000
(107,307)
249,928
4,000
3,234,555
-----------8,484,318
473,046
-----------8,957,364
=======
3,570,395
46
513,039
25,502
830,903
67,000
(56,785)
178,520
2,500
3,288,783
-----------8,419,903
637,766
-----------9,057,669
=======
22
1,441,153
-----------1,441,153
-----------
858,037
---------858,037
----------
23
24
1,278,063
1,357,775
-----------2,635,838
-----------4,076,991
------------13,034,355
========
2,074,104
1,506,513
-----------3,580,617
-----------4,438,654
-------------13,496,323
========
Note
---------
Attributable to:
31 December
2012
AED000
Total current assets

Total assets
Equity
Share capital
Share premium
Legal reserve
Capital reserve
General reserve
Revaluation reserve
Fair value reserve
Proposed dividend
Proposed Directors fees
Retained earnings
Equity attributable to owners of the Company
Total equity
Liabilities
Non-current liabilities
Long-term borrowings and payables
Total non-current liabilities
Current liabilities
Bank borrowings
Trade and other payables
Total current liabilities
Total liabilities
Total equity and liabilities
These consolidated financial statements were authorized for issue on behalf of the Board of Directors on 27 March 2013.
Sohail Faris Ghanim Al Mazrui

Chairman
Ali Fardan Al Fardan

Director
Khalid Jassim Kalban

MD & CEO
Cash flows from operating activities

Profit for the year
Adjustments for:
Depreciation
Impairment loss on property, plant and equipment
Amortization/impairment of intangible assets
Gain on disposal/write-off of property, plant and equipment
Gain on fair valuation of investment properties
(Gain)/loss on fair valuation of investments
Gain on sale of investments - net
Reversal for write down of inventories to its net realizable value
Impairment loss on trade receivables
Fair value changes in biological assets
Operating profit before changes in working capital

Changes in:
- investments at fair value through profit or loss and at fair value through OCI
- trade and other receivables
- inventories
- trade and other payables
Net cash from operating activities
Cash flows from investing activities

Purchase consideration paid for acquisition of non-controlling interests
Proceeds from disposal of subsidiaries and jointly controlled entities (refer note 38)
Net movement in investment and development properties
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Net additions to intangible assets
Net cash used in investing activities
Cash flows from financing activities

Net movement in bank borrowings and payables
Net movement in deposits under lien
Net movement in non-controlling interests
Dividend paid
Directors fee paid
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Cash and cash equivalents comprise following:

Cash in hand, current and call account with banks
Short term deposits with banks (excluding those under lien)
Bank overdraft, trust receipt loans and bills discounted
7
2011
AED000
258,523
157,655
150,036
18,169
26,345
(1,905)
(151,167)
(14,957)
(14,987)
(22,189)
51,233
(1,181)
---------297,920
151,069
3,888
(65)
(159,259)
44,476
(2,598)
(29,771)
29,107
---------194,502
235,585
30,755
99,064
(1,946)
---------661,378
---------395,891
57,512
291,270
(309,349)
---------629,826
----------
153,617
(99,585)
(168,940)
31,819
(3,580)
----------(86,669)
----------(10,650)
(143,638)
(145,055)
5,629
(6,836)
----------(300,550)
-----------
78,150
(16,381)
(7,617)
(178,520)
----------(124,368)
----------(201,421)
(20,988)
(25,543)
(214,224)
(5,000)
----------(467,176)
-----------
450,341
(137,900)
(348,657)
---------101,684
----------(210,757)
----------(348,657)
------------
299,346
112,485
(310,147)
---------101,684
======
96,513
138,243
(583,413)
----------(348,657)
======
------------------------------3,570,395
=======
---------------------
492,700
---- ------------- ---------20,339

---- ---------46 513,039
== ======
20,339
---- ---------20,339
---- ----------
---- ----------------------- ----------
46
Legal
reserve
810,564
-------- ----------------- ---------20,339

-------- ---------25,502 830,903
===== ======
20,339
-------- ---------20,339
-------- ----------
(31,992)
(45,000)
Fair
value
reserve
-------- ----------------- ----------------- --------67,000 (56,785)

===== ======
-------- ----------------- ----------
20,207
-------- ---------- (11,785)
-------- ---------- (11,785)
-------- ----------
67,000
RevalGeneral
uation
reserve reserve
-------- ------------------------------- ----------
25,502
Capital
reserve
Balance at 31 December 2011
Total transactions with owners
Total change in ownership interests in subsidiaries
Changes in ownership interests in subsidiaries

On acquisition of non-controlling interests without a
change in control
Total contributions by and distribution to owners
Transactions with owners, recorded directly in equity

Contributions by and distributions to owners
Dividend paid
Dividend paid by subsidiaries
Directors fees paid
Proposed Directors fee
Proposed dividend
Transfer to reserves
Total other comprehensive income
Net change in fair value of investments at fair

value through OCI
Impairment on investments at fair value through
OCI transferred to retained earnings
-------------------------------
3,570,395
Share
Share
capital premium
------------------(35,704)
---------178,520
======
(214,224)
178,520
---------(35,704)
----------
--------------------------
214,224
Retained
earnings
(31,992)
203,388
(20,207)
------------ -----------(20,207)
(31,992)
------------ -----------183,181
171,396
------------ ------------
203,388
------------(2,500)
------2,500
====
16,800
-----------16,800
-----------(204,898)
-----------3,288,783
=======
16,800
-----------16,800
-----------(202,424)
-----------8,419,903
=======
- (214,224)
(5,000)
(5,000)
2,500
(2,500)
- (178,520)
(40,678)
------- ------------ -----------(2,500) (221,698) (219,224)
------- ------------ ------------
--------------------
Total
(31,992)
157,655
(31,443)
(14,643)
---------- -----------(31,443)
(14,643)
---------- -----------(52,993) (255,417)
---------- -----------637,766 9,057,669
====== =======
- (214,224)
(21,550)
(21,550)
(5,000)
---------- -----------(21,550) (240,774)
---------- ------------
---------- -----------(31,992)
---------- -----------(45,733)
125,663
---------- ------------
(45,733)
736,492
Noncontrolling
Sub total
interests
5,000 3,310,500 8,450,931
Proposed
Proposed Directors
dividend
fees
----------------------------------Equity attributable to owners of the Company------------------------------

Profit for the year
Other comprehensive income
Balance at 1 January 2011
for the year ended 31 December 2011
Consolidated statement of cash flows

9,187,423
2012
AED000
Consolidated statement of changes in equity

AED000

PJSC
9
---------------------------------3,570,395
=======
-----------------------
----------------------------------
----------------------------
51,685
---------51,685
---------------------------51,685
---------564,724
======
---------------46
==
513,039
Legal
reserve
----------
46
3,570,395
Share
premium
Share
capital
General
reserve
830,903
----------------------------
44,572
---------44,572
---------------------------44,572
---------875,475
======
Capital
reserve
25,502
----------------------
-----------------------------------25,502
=====
--------------------------(107,307)
=======
---------------------67,000
=====
------------------71,408
---------249,928
======
- (178,520)
249,928
---------- ----------71,408
---------- -----------
---------------
----------------------------
(50,522)
---------(50,522)
---------(50,522)
----------
178,520
----------------------
(56,785)
Retained
earnings
321,372
321,372
------------1,500
------4,000
====
(27,915)
-----------(27,915)
-----------(206,435)
-----------8,484,318
=======
Dubai Investments PJSC (the Company) was incorporated in the United Arab Emirates by Ministerial
Resolution No. 46 of 1995, on 16 July 1995. The consolidated financial statements for the year ended 31
December 2012 comprise the financial statements of the Company and its subsidiaries (collectively referred to
as the Group) and the Groups interest in associates and jointly controlled entities.
(27,915)
-----------(27,915)
-----------(375,600)
-----------3,234,555
=======
- (178,520)
(2,500)
2,500
4,000
(4,000)
- (249,928)
(96,257)
-------- ------------ -----------1,500 (347,685) (178,520)
-------- ------------ ------------
(50,522)
------- ------------ -----------(50,522)
------- ------------ -----------321,372
270,850
------- ------------ ------------
(22,693)
(71,561)
---------(94,254)
---------(101,871)
---------473,046
======
(7,811)
194
---------(7,617)
----------
------------------(62,849)
----------
(62,849)
637,766
Noncontrolling
Sub total
interests
2,500 3,288,783 8,419,903
Fair
Proposed
value Proposed Directors
reserve dividend
fees
67,000
Revaluation
reserve
------------------------------------Equity attributable to owners of the Company--------------------------------
Balance at 31 December 2012
Total transactions with owners
Total change in ownership interests in subsidiaries
Changes in ownership interests in subsidiaries

On acquisition of non-controlling interests (refer note 37)
On disposal of subsidiaries (refer note 38)
Total contributions by and distribution to owners
Transactions with owners, recorded directly in equity

Contributions by and distributions to owners
Dividend paid
Dividend paid by subsidiaries
Reversal of proposed Directors fee (refer note 30)
Proposed Directors fee
Proposed dividend
Transfer to reserves
Introduction of share capital
Total other comprehensive income
Other comprehensive income

Net change in fair value of investments at fair
value through OCI

Profit for the year
Balance at 1 January 2012
for the year ended 31 December 2012
Consolidated statement of changes in equity (continued)
(50,608)
(71,561)
-----------(122,169)
-----------(308,306)
-----------8,957,364
=======
(178,520)
(7,811)
194
-----------(186,137)
------------
(50,522)
-----------(50,522)
-----------208,001
------------
258,523
9,057,669
Total
AED000
PJSC

Notes
(forming part of the consolidated financial statements)
1.
Reporting entity
The Group is primarily involved in the development of real estate for sale and leasing, contracting activities,
manufacturing and trading of products in various sectors and investing in bonds, funds and equity securities.
At 31 December 2012 the Company had approximately 19,252 shareholders (2011: 19,565).
The registered address of the Company is P.O.Box 28171, Dubai, UAE.
2.
Basis of preparation

Statement of compliance
The consolidated financial statements have been prepared in accordance with the International Financial
Reporting Standards (IFRSs) and the requirements of UAE Federal Law No. 8 of 1984 (as amended).
Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis, except for the following
which are measured at fair value:
- land;
- biological assets;
- investment properties;
- non-derivative financial instruments at fair value through profit or loss
- financial assets at fair value through other comprehensive income; and
- derivative financial instruments;
The methods used to measure fair values are discussed in notes 3 and 4.
Functional and presentation currency
These consolidated financial statements are presented in United Arab Emirate Dirham (AED), which is the
Companys functional currency. All financial information presented in AED has been rounded to the nearest
thousand.
Use of estimates and judgments
The preparation of financial statements in conformity with IFRSs requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognized in the period in which the estimates are revised and in any future periods affected.
In the current environment obtaining reliable fair value has been one of the greatest challenges. The nature and
reliability of information available to management to support the making of a fair value accounting estimate
vary widely, and thereby affect the degree of estimation uncertainty associated with that fair value.
Information about critical judgments in applying accounting policies that have the most significant effect on
the amount recognized in the consolidated financial statements or that have a significant risk of resulting in a
material adjustment within the next financial year are discussed in note 39.
10
PJSC
Notes (continued)
Notes (continued)
3.
3.
Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements, and have been applied consistently by the Group entities, except for
change in accounting policy for measurement of biological assets (refer biological assets accounting policy).
Adjustments have been made, wherever necessary, to align accounting policies of the subsidiaries with the
Group.
Certain comparative amounts have been reclassified to conform to the current years presentation.
Basis of consolidation
Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the
date on which control is transferred to the Group. Control is the power to govern the financial and operating
policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into
consideration potential voting rights that currently are exercisable. Judgment is applied in determining the
acquisition date and determining whether control is transferred from one party to another.
The Group measures goodwill at the acquisition date as:
- the fair value of the consideration transferred; plus
- the recognized amount of any non-controlling interests in the acquiree; plus
- if the business combination has been achieved in stages, the fair value of the existing equity interest in the
acquiree, less
- the net recognized amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognized immediately in the income statement.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships.
Such amounts generally are recognized in the income statement.
Any contingent consideration payable is recognized at fair value at the acquisition date. If the contingent
consideration is classified as equity, it is not re-measured and settlement is accounted for within equity.
Otherwise, subsequent changes to the fair value of the contingent consideration are recognized in the income
statement.
Transaction costs, other than those associated with the issue of debt or equity securities, that the Group incurs
in connection with a business combination are expensed as incurred.
Changes in non-controlling interests in a subsidiary that do not result in a loss of control are accounted for as
transactions with owners in their capacity as owners. Adjustments to non-controlling interests are based on a
proportionate amount of the net assets of the subsidiary. No adjustments are made to goodwill and no gain or
loss is recognized in the income statement.
Subsidiaries
Subsidiaries are entities controlled by the Group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Loss of control
On the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling
interests and other components of equity related to the subsidiary. Any surplus or deficit arising on the loss
of control is recognized in the income statement. If the Group retains any interest in the previous subsidiary,
then such interest is measured at fair value at the date that control is lost. Subsequently, the retained interest
is accounted for as an associate or as a joint venture or as a financial asset depending on the level of influence
retained.
11
Significant accounting policies (continued)

Basis of consolidation (continued)
Associates
Associates are those entities in which the Group has significant influence, but not control, over the financial
and operating policies. Significant influence is presumed to exist when the Group holds between 20% and
50% of the voting power of another entity. Investment in associates is accounted for using the equity method
and is recognized initially at cost. The cost of investments includes the transaction costs. The consolidated
financial statements include the Groups share of profit and equity movements of associates accounted for on
an equity basis, after adjustments to align the accounting policies with those of the Group, from the date that
significant influence commences and until the date that significant influence ceases. When the Groups share
of losses exceeds the carrying amount of the investment in the associate, the carrying amount is reduced to nil
and recognition of further losses is discontinued except to the extent that the Group has an obligation or has
made payments on behalf of an associate.
Jointly controlled entities
Jointly controlled entities are those enterprises over whose activities the Group has joint control, established
by contractual agreement and requires unanimous consent for strategic financial and operating decisions.
The consolidated financial statements include the Groups proportionate share of the entitys assets, liabilities,
income and expenses with items of a similar nature proportionately consolidated on a line-by-line basis, from
the date that joint control commences until the date that joint control ceases.
Transactions eliminated on consolidation
Material intra-group balances and transactions, and any unrealized income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising
from transactions with associates and jointly controlled entities are eliminated to the extent of the Groups
interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the
extent that there is no evidence of impairment.
Revenue
Goods and properties sold
Revenue from sale of goods and properties in the course of ordinary activities is measured at the fair value
of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is
recognized when the persuasive evidence exists that the significant risks and rewards of ownership have been
transferred to the customer, recovery of the consideration is probable, the associated costs and possible return
of goods can be estimated reliably, there is no continuing managerial involvement with the goods, and the
amount of the revenue can be measured reliably. The timing of transfer of risks and rewards varies depending
on the individual terms of sale.
Properties leased for several decades, wherein, the present value of the residual value at the inception of the
lease is estimated to be negligible is accounted for as a finance lease at the lease inception date, even if at the
end of the lease term title will not pass to the lessee.
Contract revenue
Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims
and incentive payments to the extent that it is probable that they will result in revenue and can be measured
reliably. As soon as the outcome of a construction contract can be estimated reliably, contract revenue and
expenses are recognized in the income statement in proportion to the stage of completion of the contract.
The stage of completion is assessed by reference to surveys of work performed and in some cases by comparing
the cost incurred to date with the total estimated costs of completion. When the outcome of a contract cannot
be estimated reliably, contract revenue is recognized only to the extent of contract costs incurred that are likely
to be recoverable. An expected loss on a contract is recognized immediately in the income statement.
12
PJSC
Notes (continued)
Notes (continued)
3.
3.
Revenue (continued)
Services rendered
Revenue from services rendered is recognized in proportion to the stage of completion of the transaction at
the reporting date.

Rental income
Rental income from investment properties on operating lease is recognized in income statement on a straight-line
basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental
income, over the term of the lease.
Recognition and measurement

Except for land which is carried at a revalued amount and biological assets which are carried at fair value,
the Groups property, plant and equipment are stated at historical cost, less accumulated depreciation and
accumulated impairment losses.
Dividend income
Dividend income is recognized in the income statement on the date that the Groups right to receive payment
is established, which in the case of quoted securities is normally ex-dividend date.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
Government grant
Government grant is initially recognized as deferred income at fair value when there is a reasonable assurance
that:
(a)
the Group will comply with the conditions associated to them; and
(b)
the grants will be received.
Government grant that compensates the Group for expenses incurred are recognized in the income statement
on a systematic basis over the periods necessary to match them with the related costs which they are intended
to compensate. An unconditional government grant in the form of non depreciable, non-monetary assets is
recognized in the income statement when the grant becomes receivable.
Finance income and expense

Finance income comprises interest income on funds invested, unwinding of the discount factor on financial
assets measured at amortized cost and gain on derivative financial instruments. Interest income is recognized
in the income statement as it accrues, taking into account the effective yield on the asset.
Finance expenses comprise interest expenses on borrowings, net foreign exchange loss, unwinding of the
discount factor on financial liabilities measured at amortized cost, losses on derivative financial instruments
and impairment loss on trade receivables. Interest is payable on current facilities from banks and overdrafts
and term loans obtained from banks at normal commercial rates.
Borrowing costs that are not directly attributable to the acquisition, construction or production of qualifying
assets are recognized as expense in the income statement using the effective interest method. However,
borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets
are capitalized as part of the cost of that asset. The capitalization of borrowing costs commences from the
date of incurring of expenditure relating to the qualifying asset and ceases when all the activities necessary to
prepare the qualifying asset for its intended use or sale are complete. Borrowing costs relating to the period
after acquisition, construction or production are expensed. Capitalization of borrowing costs is suspended
during extended period in which the active development of a qualifying asset has ceased.
Foreign currency gain or losses are represented on a net basis either as a finance income or finance expenses
depending on whether foreign currency movements are in a net gain or net loss position.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed
assets includes the cost of materials and direct labor, any other costs directly attributable to bringing the assets
to a working condition for its intended use and capitalized borrowing costs.
Gains and losses on disposal of an item of property, plant and equipment (calculated as the difference
between the net proceeds from disposal and the carrying amount of the item) is recognized in the income
statement. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to
retained earnings.
Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, the property is remeasured
to fair value and reclassified as investment property. Any gain arising on remeasurement is recognized in
the income statement to the extent the gain reverses a previous impairment loss on the specific property,
with any remaining gain recognized in the revaluation reserve directly in other comprehensive income and
presented in the revaluation reserve in equity. Any loss is recognized in other comprehensive income and
presented in the revaluation reserve in equity to the extent that an amount had previously been included in
the comprehensive income relating to the specific property, with any remaining loss recognized immediately
in the income statement.
Subsequent costs
Subsequent expenditure is capitalized only when it is probable that the future economic benefits associated
with the expenditure will flow to the Group. The costs of day-to-day servicing of property, plant and equipment
is expensed as incurred.
Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount
substituted for cost, less its residual value.
Depreciation is recognized in the income statement on a straight-line basis over the estimated useful lives
of each component, since this mostly reflects the expected pattern of consumption of the future economic
benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their
useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term.
Land is not depreciated.
Depreciation of an asset begins when it is available for use, i.e. when it is in the location and condition
necessary for it to be capable of operating in the manner intended by management.
The estimated useful lives for the current and comparative years of significant items of property, plant and
equipment are as follows:
Buildings
Plant and equipment
Office equipment and furniture
Motor vehicles
Life (years)
15-33
2-22
3-10
3- 7
Depreciation methods, useful lives and residual values are reviewed at each reporting period and adjusted if
appropriate.
13
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Notes (continued)
Notes (continued)
3.
3.

Property, plant and equipment and biological assets (continued)
Investment properties (continued)
Biological assets
The Groups biological assets comprise of dairy cattle used to produce milk and related dairy products. In
accordance with IAS 41 Agriculture, the Group is required to fair value its biological assets and produce
therefrom, however, due to various complexities involved, it was not possible earlier to fair value biological
assets and therefore these were measured at historical cost less accumulated depreciation and impairment
losses, if any. The cost of the home grown and bought-out biological assets was depreciated at 15.5 percent
per annum over the lactation period.
An investment property is measured at cost on initial recognition and subsequently at fair value with any
changes therein are recognized in the income statement.
In 2012, the Group has changed its accounting policy for measuring biological assets and these are now
measured at fair value less cost to sell, with any changes therein recognized in the income statement. Fair
value of biological assets is determined by a professional independent valuer who has adequate experience
to value livestock. Cost to sell includes all cost that would be necessary to sell the biological assets.
External, independent valuation companies, having the appropriate recognized professional qualification and
recent experience in the location and category of property being valued, value the portfolio regularly. The
valuations are prepared by considering the aggregate of the net cash flows from the properties. A yield which
reflects the specific risks inherent in the net cash flows is then applied to arrive at the property valuation.
The change in accounting policy had no material impact on comparatives and the results for the current year.
The fair value adjustments on investment properties are included in the income statement as investment
returns in the period in which these gains or losses arise. In determining the carrying amount of investment
properties, the Group does not double count assets or liabilities that have already been recognized as separate
assets or liabilities.
Leased assets
Leases in terms of which the Group assumes all the risks and rewards of ownership are classified as finance
leases. Property, plant and equipment acquired by way of finance lease is stated at an amount equal to the
lesser of the assets fair value and the present value of the minimum lease payment at inception of the lease,
less accumulated depreciation and impairment losses (if any).
Intangible assets
Goodwill
Goodwill that arises on the acquisition of subsidiaries and joint ventures is presented with intangible assets.
For the measurement of goodwill at initial recognition, see above policy on business combinations. Goodwill
attributable to investment in associates is shown as part of the carrying value of investment.
Subsequent measurement
Goodwill is tested annually for impairment and is carried at cost less accumulated impairment losses.
Other intangible assets

ther intangible assets including technical know-how, product distribution rights, patents and trademarks
O
that have finite useful lives are stated at cost less accumulated amortization and accumulated impairment
losses. These are amortized as per managements estimate of their useful life, which is between 5 to 10 years.
Subsequent expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill
and brands, is recognized in the income statement as incurred.
Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if
appropriate.
Investment properties are properties held either to earn rental income or for capital appreciation or for both,
but not for sale in the ordinary course of business, use in the production or supply of goods or services or
for administration purposes. Where the Group provides ancillary services to the co-occupants of a property,
it treats such a property as investment property if the services are a relatively insignificant component in the
arrangement as a whole.
15
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of
self-constructed investment property includes the cost of materials and direct labour, any other costs directly
attributable to bringing the investment property to a working condition for their intended use and capitalized
borrowing costs.
Property that is being constructed for future use as investment property is accounted for as investment
property and classified under development property until construction or development is complete.

When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value
at the date of reclassification becomes its cost for subsequent accounting.
Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds
from disposal and the carrying amount of the property) is recognized in the income statement. When an
investment property that was previously classified as property, plant and equipment is sold, any related
amount included in the revaluation reserve is transferred to retained earnings.
Property that is being constructed or developed for future use as an investment property is classified as
development property and is measured at fair value. If fair value of an investment property under construction
is not reliably determinable but expected to be determinable when construction is complete, it is measured at
cost until either its fair value becomes reliably determinable or construction is completed (whichever is earlier).
Inventories
Inventories comprise finished goods, raw materials, work-in-progress, spare parts, consumables and
properties under development for sale.
Finished goods, raw material, spare parts, work-in-progress and consumables
Inventories are measured at lower of cost and net realizable value. The cost of raw materials, spare parts and
consumables are based on the weighted average cost method and includes expenditure incurred in acquiring
the inventories and bringing them to their existing location and condition. Finished goods are stated at cost
of raw material and also include an appropriate proportion of overheads based on normal operating capacity.
Work in progress is stated at cost of raw materials and directly attributable overheads. Net realizable value is
the estimated selling price in the ordinary course of business less estimated selling expenses.
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Notes (continued)
Notes (continued)
3.
3.
Inventories (continued)
Financial instruments (continued)
Properties under development for sale

Properties under development for sale are classified as inventories and stated at the lower of cost and net
realizable value. Cost includes the aggregate cost of development, borrowing costs capitalized and other
direct expenses. Net realizable value is estimated by the management, taking into account the expected
price which can be ultimately achieved, based on prevailing market conditions and the anticipated costs to
completion.
Financial assets measured at fair value

Financial assets other than those classified as financial assets measured at amortized cost are subsequently
measured at fair value with all changes in fair value recognized in income statement.
However, for investments in equity instruments that are not held for trading, the Group may elect at initial
recognition to present gains and losses in other comprehensive income on an instrument by instrument
basis. For instruments measured at fair value through other comprehensive income, gains and losses are
never reclassified to income statement and no impairments are recognized in income statement. Dividends
earned from such investments are recognized in income statement unless the dividends clearly represent a
recovery of part of the cost of the investment.
The amount of any write down of properties under development for sale is recognized as an expense in the
period the write down or loss occurs. The amount of any reversal of any write down arising from an increase
in net realizable value is recognized in the income statement in the period in which the increase occurs.
Construction work-in-progress
Construction work-in-progress represents the gross unbilled amount expected to be collected from customers
for contract work performed to date. It is measured at cost plus profit recognized to date less progress billings
and recognized losses. Cost includes all expenditure related directly to specific projects and an allocation
of fixed and variable overheads in the Groups contract activities based on normal operating capacity.
Construction work-in-progress is presented as part of other receivables in the statement of financial position
for all contracts in which costs incurred plus recognized profits exceed progress billings. If progress billings
exceed costs incurred plus recognized profits, then the difference is presented as part of other payables in
the statement of financial position.
inancial assets and liabilities are offset and the net amount presented in the statement of financial position
F
when, and only when, the Group has a legal right to offset the amounts and intends either to settle on a net
basis or to realize the asset and settle the liability simultaneously.

Non-derivative financial liabilities comprise loans and borrowings, bank overdrafts and trade and other

payables. Such financial liabilities are recognized initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition these financial liabilities are measured at amortized cost using the
effective interest method.
The Group initially recognizes financial assets on the trade date at which the Group becomes a party to the
contractual provisions of the instrument.
The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash flows in a transaction when substantially all the risks
and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial asset
that is created or retained by the Group is recognized as a separate asset or liability.
Financial assets measured at amortized cost
A financial asset is subsequently measured at amortized cost using the effective interest method and net of
any impairment loss, if:
- the asset is held within a business model with an objective to hold assets in order to collect contractual
cash flows; and
- the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely
payments of principal and interest.
Finance assets measured at amortized cost comprise trade and other receivables, cash and cash equivalents,
rent receivables and finance lease receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash and bank balances and fixed deposits (with maturity of less than
three months). Bank overdrafts and trust receipts that are repayable on demand and form an integral part of
the Groups cash management are included as a component of cash and cash equivalents for the purpose of
the statement of cash flows.
17
Non-derivative financial liabilities

he Group initially recognizes debt securities issued and subordinated liabilities on the date that they are
T
originated. All other financial liabilities (including liabilities designated as fair value through profit or loss) are
recognized initially on the trade date at which the Group becomes a party to the contractual provisions of the
instrument. The Group derecognizes a financial liability when its contractual obligations are discharged or
cancelled or expire.
Financial instruments
Non-derivative financial assets
Financial assets are initially measured at fair value. If the financial asset is not subsequently measured at fair
value through profit or loss, the initial measurement includes transaction costs that are directly attributable to
the assets acquisition or origination. The Group subsequently measures financial assets at either amortized
cost or fair value.
Non-derivative financial assets (continued)
Derivative financial instruments

The Group holds derivative financial instruments to economically hedge its foreign currency and interest rate
exposures. At the reporting date, derivatives are marked to market and changes therein are recognized in the
income statement as the Group does not apply hedge accounting.
Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities
at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date.
The foreign currency gain or loss on monetary items is the difference between amortized cost in the functional
currency at the beginning of the year, adjusted for effective interest and payments during the year, and the
amortized cost in foreign currency translated at the exchange rate at the end of the reporting year.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are
recognized in income statement.
18
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Notes (continued)
Notes (continued)
3.
3.
Foreign currency (continued)

Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to AED at the exchange rates at the reporting date. The income and expenses of
foreign operations are translated to AED at the average exchange rates for current year. Foreign exchange
differences arising on translation are recognized in other comprehensive income and presented in the foreign
currency translation reserve in equity. When a foreign operation is disposed of such that control, significant
influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign
operation is reclassified to income statement as part of gain or loss on disposal. When the Group disposes of
only part of its interest in a subsidiary or joint venture that includes a foreign operation while retaining control,
the relevant proportion of the cumulative amount is re-attributed to the non-controlling interests. When the
Group disposes of only part of its interest in an associate that includes a foreign operation while retaining
significant influence, the relevant proportion of the cumulative amount is reclassified to income statement.
Provisions
A provision is recognized if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. When the effect of time value of money is material, provisions are determined by discounting
the expected future cash flows at a rate that reflects current market assessments of the time value of money
and the risks specific to the liability. The unwinding of the discount is recognized as finance expenses.
Impairment
Non-derivative financial assets
A financial asset not carried at fair value is assessed at each reporting date to determine whether there is
objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss
event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on
the estimated future cash flows of that asset that can be estimated reliably.
bjective evidence that financial assets are impaired can include default or delinquency by a debtor,
O
restructuring of an amount due to the Group on terms that the Group would not consider otherwise,
indications that a debtor or issuer will enter bankruptcy, economic conditions that correlated with defaults or
the disappearance of an active market for a security.
The Group considers evidence of impairment for receivables at both a specific asset and collective level. All
individually significant receivables are assessed for specific impairment. All individually significant receivables
found not to be specifically impaired are then collectively assessed for any impairment that has been incurred
but not yet identified. Receivables that are not individually significant are collectively assessed for impairment
by grouping together receivables with similar risk characteristics.
I n assessing collective impairment the Group uses historical trends of the probability of default, timing of
recoveries and the amount of loss incurred, adjusted for managements judgment as to whether current
economic and credit conditions are such that the actual losses are likely to be greater or less than suggested
by historical trends.
n impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference
A
between its carrying amount and the present value of the estimated future cash flows discounted at the assets
original effective interest rate. Losses are recognized in income statement and reflected in an allowance
account against receivables. Interest on the impaired asset continues to be recognized through the unwinding
of the discount. When a subsequent event causes the amount of impairment loss to decrease, the decrease
in impairment loss is reversed through income statement.
19

Impairment (continued)
Non-derivative financial assets (continued)
The carrying amounts of the Groups non-financial assets, other than biological assets, investment properties,
development properties and inventories, are reviewed at each reporting date to determine whether there is
any indication of impairment. If any such indication exists then the assets recoverable amount is estimated.
For goodwill and intangible assets that have indefinite useful lives or that are not available for use, the
recoverable amount is estimated each year at the same time. An impairment loss is recognized if the carrying
amount of an asset or its cash generating unit (CGU) exceeds its estimated recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to
sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets
that generates cash inflows from continuing use that are largely independent of the cash inflows of other
assets or CGU. The goodwill acquired in a business combination, for the purpose of impairment testing, is
allocated to CGU that are expected to benefit from the synergies of the combination.
Impairment losses are recognized in the income statement. Impairment losses recognized in respect of cash
generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units, and
then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis.
n impairment loss in respect of goodwill is not reversed. Impairment losses, other than in respect of
A
goodwill, are reversed when there is an indication that the impairment loss may no longer exist and there has
been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed
only to the extent that the assets carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortization, if no impairment loss had been recognized.
Staff terminal benefits

The provision for staff terminal benefits, disclosed under other payables and accruals, is based on the liability
that would arise if the employment of all the staff were terminated at the reporting date. This provision has
been calculated in accordance with the UAE Federal Labor Law, as applicable.
In accordance with the UAE Federal Labor Law No. 7 of 1999 for pension and social security, the employers
are required to contribute 12.5% of the contribution calculation salary of those employees who are UAE
nationals. These employees are also required to contribute 5% of the contribution calculation salary to the
scheme. The Groups contribution is recognized as an expense in the income statement as incurred.
Leases
As lessee operating lease
Leases of assets under which the lessor effectively retains all the risks and rewards of ownership are classified
as operating leases. Payments made under operating lease are recognized in the income statement on a
straight-line basis over the term of the lease. Lease incentives received are recognized as an integral part of
the total lease expense, over the term of the lease.
As lessee finance lease
Minimum lease payments made under finance leases are apportioned between the finance expense and the
reduction of outstanding liability. The finance expense is allocated to each period during the lease term so as
to produce a constant periodic rate of return on the remaining balance of the liability.
20
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Notes (continued)
Notes (continued)
3.
4.

Non-current assets held for sale and distribution
Non-current assets or disposal groups comprising assets and liabilities that are expected to be recovered
primarily through sale rather than through continuing use are classified as held for sale or distribution.
Immediately before classification as held for sale or distribution, the assets, or components of a disposal
group, are measured in accordance with the Groups accounting policies. Thereafter generally the assets, or
disposal group, are measured at lower of their carrying amount and fair value less cost to sell. Any impairment
loss on a disposal group is allocated first to goodwill, and then to remaining assets and liabilities on a
pro rata basis, except that no loss is allocated to inventories, financial assets, investment properties and
development properties which continue to be measured in accordance with the Groups accounting policies.
Impairment losses on initial classification as held for sale or distribution and subsequent gains or losses on remeasurement are recognized in the income statement. Gains are not recognized in excess of any cumulative
impairment loss.
Intangible assets and property, plant and equipment once classified as held for sale or distribution are not
amortized or depreciated. In addition, equity accounting of equity-accounted investees ceases once classified
as held for sale or distribution.
Earnings per share

The Group presents basic earnings per share (EPS) data for its shares. Basic EPS is calculated by dividing
the profit attributable to shareholders of the Company by the weighted average number of shares outstanding
during the year. Weighted average number of shares outstanding is retrospectively adjusted to include the
effect of any increase in the number of shares without a corresponding change in resources.
Segment reporting
Determination of fair values

A number of the Groups accounting policies and disclosures require the determination of fair values, for both
financial and non-financial assets and liabilities. Fair values have been determined for measurement and/
or disclosure purposes based on the following methods. Where applicable, further information about the
assumptions made in determining fair values is disclosed in the notes specific to that asset or liability or in
note 39.
Property, plant and equipment
The fair value of property, plant and equipment recognized as a result of a business combination is based
on market values. The market value of property, plant and equipment is the estimated amount for which it
could be exchanged on the date of valuation between a willing buyer and a willing seller in an arms length
transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without
compulsion.
Biological assets
The fair value of livestock is based on the market price of livestock of similar age, weight, breed and genetic
make-up and has been determined by an external independent valuer.
Investment property
External, independent valuation companies, having appropriate recognized professional qualification and
recent experience in the location and category of property being valued, value the Groups investment
property portfolio on a regular basis. The fair values are based on market values, being the estimated amount
for which a property could be exchanged on the date of the valuation between a willing buyer and a willing
seller in an arms length transaction after proper marketing wherein parties had each acted knowledgeably,
prudently and without compulsion. These fair values are reviewed by the management in light of the current
economic environment.
New standard and interpretation not yet effective
In the absence of current prices in an active market, the valuations are prepared considering the aggregate
of the estimated net cash flows expected to be received from renting out the property. A yield that reflects
the specific risks inherent in the net cash flows then is applied to the net annual cash flows to arrive at the
property valuation.
A number of new standards, amendments to standards and interpretations are not yet effective and therefore
have not been applied in preparing these consolidated financial statements. None of these are expected to
have a significant effect on the consolidated financial statements of the Group, except for the following:
Investment property under construction is valued by estimating the fair value of the completed investment
property and then deducting from that amount the estimated costs to complete construction, financing costs
and a reasonable profit margin.
IFRS 11 Joint Arrangements: IFRS 11 supersedes IAS 31 Interests in Joint Ventures and is effective for annual
periods beginning on or after 1 January 2013. IFRS 11 establishes principles for financial reporting by entities
that have an interest in arrangements that are controlled jointly (i.e. joint arrangements) and describes joint
arrangement as either a joint operation or joint venture entity. As per IFRS 11, when the Group has rights
only to the net assets of the arrangement i.e. a joint venture entity, it accounts for its interest using the equity
method. The investments of the Group classified as jointly controlled entities, will be accounted for using
equity method from 1 January 2013 instead of the current accounting policy of proportionate consolidation.
This change in accounting policy will affect individual line items of the consolidated statement of financial
position, consolidated income statement, consolidated statements of other comprehensive income, cash
flows and changes in equity; however, it will not have any impact on the profit and equity attributable to
owners of the Company. Total assets, liabilities, income and expenses of the Groups interests in joint ventures
included in these consolidated financial statements are summarized in note 35.
Inventories
The fair value of inventories acquired in a business combination is determined based on the estimated selling
price in the ordinary course of business less the estimated costs of completion and sale and a reasonable
profit margin.
Segment results that are reported to the Board of Directors include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
Equity and debt securities

The fair value of quoted equity and debt securities is determined by reference to their closing bid price at
the reporting date, or if unquoted, the fair value is determined using various alternative valuation techniques.
Trade and other receivables
The fair value of trade and other receivables, excluding construction work-in-progress is estimated as the
present value of future cash flows, discounted at the market rate of interest at the reporting date.
Derivatives
The fair value of derivatives is based on their quoted price.
21
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Notes (continued)
Notes (continued)
5.
5.
Financial risk management
Financial risk management (continued)
Overview
Credit risk (continued)
The Group has exposure to the following risks from its use of financial instruments:
Investments
The Group limits its exposure to credit risk by only investing with counterparties that have credible market
reputation. The Groups management does not expect any counterparty to fail to meet its obligations.
Credit risk
Liquidity risk
Market risk
Operational risk
This note presents information about the Groups exposure to each of the above risks, the Groups objectives,
policies and processes for measuring and managing risk, and the Groups management of capital. Further
quantitative disclosures are included throughout these consolidated financial statements.
Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the Groups risk
management framework. The Groups risk management policies are established to identify and analyze the
risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to
limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Groups activities.
Cash at bank
Cash is placed with local and international banks of good repute.

Guarantees
The Company policy is to provide financial guarantees to its subsidiaries and jointly controlled entities in
proportion to its holding. In the event, financial guarantee is issued in excess of the Companys proportionate
holding; usually undertaking/indemnities are obtained from the partners.
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Groups approach
to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Groups reputation.
The Groups Audit Committee oversees how management monitors compliance with the Groups risk
management policies and procedures, and reviews the adequacy of risk management framework in relation
to the risks faced by the Group. The Audit Committee is assisted in its oversight role by the Internal Audit.
Internal Audit undertakes both regular and ad-hoc reviews of risk management controls and procedures, the
results of which are reported to the Audit Committee.
The Group ensures that it has sufficient cash on demand to meet expected operational expenses, including
the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot
reasonably be predicted, such as natural disasters. The Group currently has the following credit limits which
are unutilized:
Credit risk
* Short term bank loan facilities totalling to AED 304 million on which interest is payable at normal commercial
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Groups trade and other receivables,
finance lease receivables, rent receivables, investments in funds and cash at bank.
The Groups exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the demographics of the Groups customer base, including the
default risk of the industry and country in which customers operate, as these factors may have an influence
on credit risk.
The Group seeks to limit its credit risk with respect to customers by reviewing credit to individual customers by
tracking their historical business relationship and default risk. Subsidiaries operating in the property segment
sell its properties subject to retention of title clauses, so that in the event of non-payment the Group may have
a secured claim.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect
of trade and other receivables. The main components of this allowance are a specific loss component that
relates to individually significant exposures, and a collective loss component established for groups of similar
assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is
determined based on historical data of payment statistics for similar financial assets and also taking into
consideration the current economic factors.
rates.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Groups income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimizing the return.
The Group buys derivatives, and also incurs financial liabilities, in order to manage market risks. However, the
Group does not apply hedge accounting.
Currency risk
The Group is exposed to currency risk on sales and purchases that are denominated in a currency other than
the respective functional currencies of the Group entities, primarily United States Dollar (USD) and Euro.
The Group does not face any foreign currency risk on transactions denominated in USD as AED is currently
pegged to USD.
The Group manages its exposure in foreign currency exchange rates by the use of derivative instruments. The
Group economically hedges, as appropriate, its foreign currency exposure in respect of trade receivables and
trade payables. The Group uses forward exchange contracts to hedge its currency risk, most with a maturity
of less than one year from the reporting date. When necessary, forward exchange contracts are rolled over
at maturity.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures
that its net exposure is kept to an acceptable level by matching the timing of its receipts and payments
denominated in foreign currencies.
23
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Notes (continued)
Notes (continued)
5.
6.
Financial risk management (continued)

Market risk (continued)
Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect the net finance cost of the
Group.
These include:
Staff costs
Depreciation
Reversal for write down of inventories to net realizable value

Financial assets and liabilities that are subject to fair value interest risk are the ones with fixed interest rate.
Financial assets and liabilities that are subject to cash flow interest rate risk are the ones with floating interest rate.
The Group has hedged its exposure to certain floating rate long term loans by entering into structured interest
rate swaps with banks. At 31 December 2012 the Group held outstanding interest rate swap contacts with
notional amounts of AED 73.13 million (2011: AED 84.37 million). The swaps mature over the next 2 to 8 years
following the pattern of the maturity of the related loans.
7.
8.
Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the
Groups processes, personnel, technology and infrastructure, and from external factors other than credit, liquidity
and market risks such as those arising from legal and regulatory requirements and generally accepted standards
of corporate behavior. Operational risks arise from all of the Groups operations.
9,130 15,977
3,405 1,691
-------- -------12,535 17,668
=====
=====
Interest expense
(174,139) (156,352)
Net foreign exchange gain/(loss)
20 (3,493)
Net change in fair value/settlement of derivative financial instruments
(618) 6,500
Impairment loss on trade receivables - net
(51,233) (29,107)

--------- --------Finance expenses
(225,970) (182,452)
======= =======
The Groups objective is to manage operational risk so as to balance the avoidance of financial losses and
damage to the Groups reputation with overall cost effectiveness.
The Boards policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business. The Board of Directors monitors the return on capital, which is
defined as profit for the year attributable to equity holders of the Company divided by total shareholders equity.
The Board of Directors monitors the level of dividend to shareholders.
Finance income and expenses

2012
2011
AED000 AED000

Interest income
nwinding of discount on financial assets measured at amortized cost
U

Finance income

Operational risk
Capital management
Administrative and general expenses

2012 2011
AED000 AED000
Staff costs
205,383 205,392
Depreciation 36,608 39,785
===== =====
Other market price risk

Equity price risk arises from marketable securities measured at fair value. Management of the Group monitors the
mix of debt and equity securities in investments portfolio to maximize investment returns, which is the primary
goal of the Groups investment strategy. In accordance with this strategy certain investments are designated as
fair value through profit or loss because their performance is actively monitored and they are managed on a fair
value basis.
Compliance with the Group standards is monitored by periodic reviews undertaken by Internal Audit, the results
of which are submitted to the Audit Committee and senior management of the Group.
196,827 217,284
113,428 111,284
(22,189) (29,771)
====== ======
These include:
Although the swap is undertaken to hedge the exposure on interest rate on the floating rate loan, the Group has
not opted to use hedge accounting. Had the hedge accounting been used, the effective portion of the hedge
would have been taken through other comprehensive income. The net fair value of the interest rate swap at
31 December 2012 was a liability of AED 12.76 million (2011: liability of AED 12.9 million). The changes in fair
valuation are recognized in the income statement.
The long-term loans attract varying rates of interest, which are, in general, varied with reference to the base
lending rates of the banks at regular intervals.
Direct operating costs

2012 2011
AED000 AED000
9.
Other income
Other income mainly includes service fee, lease transfer charges, sale of scrap and write back of provisions no
longer required.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of
borrowings and the advantages of security afforded by a sound capital position. There were no changes in the
Groups approach to capital management during the year.
The Company and its subsidiaries have various borrowing arrangements with banks, some of which require it to
maintain net worth, leverage and debt equity ratios. Apart from these requirements and requirements of certain
provisions of the UAE Federal Law No. 8 of 1984 (as amended), neither the Company nor any of its subsidiaries
are subject to other externally imposed capital requirements.
25
26
PJSC
Notes (continued)
Notes (continued)
10.
10.
Property, plant and equipment and biological assets (continued)

(i)
Office
Plant & equipment
Land and Biological
assets equipment & furniture
buildings
AED000
AED000
AED000 AED000
Cost/valuation
At 1 January 2011
Additions
Disposals and write-offs
Transfers
At 31 December 2011
At 1 January 2012
Additions
Disposals and write-offs
Transfers
Change in fair value
On disposal of investment in subsidiaries
and jointly controlled entities
Offset of accumulated depreciation on
change in accounting policy (refer note 3)
At 31 December 2012
Accumulated depreciation and
impairment losses
At 1 January 2011
Charge for the year
On disposals and write-offs
At 31 December 2011
At 1 January 2012
Charge for the year
Impairment loss (refer note 11a)
On disposals and write-offs
On disposal of investment in subsidiaries
and jointly controlled entities
Offset of accumulated depreciation on
change in accounting policy (refer note 3)
At 31 December 2012
Net book value
At 31 December 2011
At 31 December 2012
27
Motor
vehicles
AED000
Capital
work-inprogress
AED000
Total
AED000
431,623
101,416
(359)
(123,632)
---------409,048
----------
3,463,346
145,055
(17,811)
38,884
----------3,629,474
-----------
962,798
3,289
(320)
185,139
-----------1,150,906
------------
23,412
3,701
(2,749)
-------24,364
--------
1,919,397
25,519
(5,693)
(22,652)
-----------1,916,571
------------
72,575
6,359
(4,646)
29
--------74,317
---------
53,541
4,771
(4,044)
-------54,268
--------
1,150,906
15,972
(27,041)
39,017
-
24,364
6,766
(2,709)
1,181
1,916,571
71,669
(8,467)
25,213
-
74,317
10,235
(3,683)
4,075
-
54,268
5,557
(2,716)
892
-
409,048 3,629,474
58,741 168,940
(20)
(44,636)
(69,197)
1,181
(99,923)
(89,690)
(3,107)
(14,197)
(3,921) (210,838)
-----------1,078,931
------------
(8,746)
-------20,856
--------
---------1,915,296
------------
-------81,837
---------
--------43,804
--------
(8,746)
----------- ----------394,651 3,535,375
---------- -----------
157,943
38,478
(103)
--------196,318
--------196,318
37,517
(4,163)
7,545
1,201
------8,746
------8,746
-
459,597
93,219
(4,735)
----------548,081
----------548,081
94,431
18,169
(5,057)
59,086
11,292
(4,646)
-------65,732
-------65,732
12,616
(3,560)
36,980
6,879
(2,763)
-------41,096
-------41,096
5,472
(1,942)
484
----484
----484
-
721,635
151,069
(12,247)
--------860,457
---------860,457
150,036
18,169
(14,722)
(20,253)
(60,157)
(2,580)
(12,134)
(95,124)
----------209,419
----------
(8,746)
--------------
---------595,467
-----------
-------72,208
--------
--------32,492
--------
------484
-----
(8,746)
---------910,070
----------
954,588
======
15,618
=====
1,368,490
=======
8,585
=====
13,172
=====
408,564 2,769,017
====== =======
869,512
======
20,856
=====
1,319,829
=======
9,629
=====
11,312
=====
394,167 2,625,305
====== =======
The Group had purchased a plot of land costing AED 5 million in 1996. In 1997, the Government of Dubai
gifted another plot of land adjacent to the existing land to the Group, which was accounted for at nominal
value by the Group. These plots of land were earlier revalued during 1999, 2003 and 2005 and 2009 by a
professional firm of independent property valuers. As the market value of these plots of land was higher
than the carrying value as at those dates, a revaluation surplus arose which had been credited to nondistributable revaluation reserve (refer note 28).
(ii) Capital work in progress mainly represents cost incurred by a subsidiary for establishing its manufacturing
facilities and cost incurred by a joint venture towards certain key district cooling projects in progress at
the year end. Also included is the borrowing cost amounting to AED 2.75 million (2011: AED 5.87 million)
capitalized during the year as a part of the cost of the qualifying assets.
(iii) Buildings, plant and machinery with a net book value of AED 912 million (2011: AED 1,139 million) are
mortgaged as security against term loans obtained from banks. In certain instances, the insurance over
buildings and plant and machinery is also assigned in favor of the banks against facilities availed.
28
PJSC
Notes (continued)
Notes (continued)
11.
12.
Goodwill and intangible assets

Technical
know-how,
product
distribution
rights,
patent
and
Goodwill trademark
Cost
As at 1 January 2011
Additions
As at 31 December 2011
Additions
Disposal of subsidiaries and jointly
controlled entities
AED000
Other
intangible
assets
Total
187,903
45,800
12,272
245,975
--------187,903
---------
5,684
-------51,484
--------
1,152
------13,424
-------
6,836
---------252,811
----------
187,903
-
51,484
103
13,424
3,477
252,811
3,580
(47,226)
--------140,677
---------
-------51,587
--------
------16,901
-------
(47,226)
---------209,165
----------
(13,281)
-------(13,281)
---------
(14,655)
(3,798)
-------(18,453)
---------
(3,551)
(90)
------(3,641)
-------
(31,487)
(3,888)
-------(35,375)
----------
(13,281)
(13,933)
-------(27,214)
---------
(18,453)
(6,525)
-------(24,978)
--------
(3,641)
(2,920)
(2,967)
------(9,528)
-------
(35,375)
(9,445)
(16,900)
-------(61,720)
----------
174,622
======
33,031
======
9,783
=====
217,436
======
113,463
======
26,609
======
7,373
=====
147,445
======

2012 2011
AED000 AED000

At 1 January
3,977,154 3,571,315
Additions
- 57,724
Transferred from development properties (refer note 13)
128,961 180,356
Transferred from inventories
-
8,500
On disposal of subsidiaries and jointly controlled entities
(4,075) Gain on fair valuation
151,167 159,259
------------
----------At 31 December
4,253,207 3,977,154
======= =======
Included in investment properties are mainly the following:
(a) Infrastructure facilities leased to third parties, built on the land (number 598-0100 and 596-0100 located in
Jebel Ali Industrial Area) obtained from the Government of Dubai on a renewable, non-cancellable long-term
lease of 99 years. The Group was exempted to pay the lease rentals for the first ten years and thereafter,
starting 1 February 2009, 20% of the net realized profits from the project are payable.

The leased land from the Government of Dubai is developed in phases. During the current year, the
development of a portion of warehouse project 2 in Phase VIII was substantially completed and the Group
obtained fair value of this phase. The development of remaining portion of warehouse project 2 in Phase VIII
is in progress as of the year end.
As at 31 December 2012, the Group has obtained fair values for all completed phases/areas. The valuation
was carried out by an independent registered valuer in accordance with the RICS Appraisal and Valuation
Manual issued by the Royal Institute of Chartered Surveyors which also takes into consideration the cash
outflows resulting from the estimated 20% share of the net realized profits due to the Government of Dubai
starting February 2009. The cash flows from existing phases have increased mainly due to increase in lease
rentals per terms of contract with tenants.
Since, valuation of all completed phases/areas by independent registered valuer is based on future net cash
flows, the amount of rent accrued on the straight line basis as per IAS 17 has been eliminated. Similarly, the
unearned rent received in advance and recognized liabilities for 20% share of the Government of Dubai at the
valuation date have been included in the valuation of investment properties. The reconciliation of valuation of
investment properties carried out by the independent registered valuer and the adjusted valuation included
in the consolidated financial statements is as follows:
Accumulated amortization and impairment losses

Amortization
Amortization
Impairment (refer (a) below)
Carrying amount
31 December 2011
31 December 2012
(a) A subsidiary of the Group has temporarily suspended its operations due to market conditions. As per
the Group policy, assets of the subsidiary identified as the cash generating unit (CGU) were tested for
impairment. Based on the assessment of recoverable amount, the Group has recorded an impairment loss
of AED 32 million. The recoverable amount is determined based on fair value less cost of disposal. The
impairment loss has been allocated as follows:

2012 2011
AED000 AED000
Fair valuation of completed areas/phases in Dubai Investments
Park as per independent registered valuation reports
3,534,403 3,245,605
Less: adjustment for rent receivable
(189,520) (223,848)
Add: adjustment for unearned rent*
130,777 127,509
Add: adjustment for recognized liabilities
66,696 64,007
------------ ----------- 3,542,356 3,213,273
======= =======

*Unearned rent represents receipt of lease rentals in advance from few tenants.

2012

AED000
Goodwill related to the cash generating unit
13,933
Property, plant and equipment
18,169

=====
29
30
PJSC
Notes (continued)
Notes (continued)
12.
14. Investments
Investment properties (continued)

(b) Residential units leased out under short term operating leases, a shopping mall and executive apartments
of the joint venture entity, Properties Investment LLC (PI). For the residential property units, the operating
lease agreements give the tenants an option to buy the property at an option price. The fair value of
such property units have accordingly been restricted to the option price committed to the tenants. The
fair value of the shopping mall and the executive apartments is determined by an external, independent
valuation company amounting to AED 76.5 million (Groups share).
2011
AED000
326,069
274,922
---------600,991
======
348,731
447,955
---------796,686
======
440,245
--------440,245
======
492,086
---------492,086
======
2012
AED000
2011
AED000
400,193
279,138
361,905
----------1,041,236
=======
521,366
330,768
436,638
----------1,288,772
=======
Investments at fair value through profit or loss:

- Held for trading quoted equity securities
- Unquoted equity securities, funds and bonds*
(c) A plot of land in Dubai, which was gifted to the Company by the Government of Dubai. The Company
constructed an office cum residential building in 2001 on the gifted land and this has been fully let out. The
fair valuation of this property at the reporting date has been determined internally amounting to AED 68
million.
(i)
Investments at fair value through other comprehensive income:
(d) A plot of land received by a subsidiary as grant from the Government of Fujairah. The fair value of this
plot of land as at the reporting date has been determined by an external, independent valuation company
amounting to AED 175 million.
- Unquoted equity securities**

(ii)
(e) Labor camps and warehouses leased to third parties under operating leases. The fair valuation of these
labor camps and warehouses at the reporting date has been determined by an external, independent
valuation company amounting to AED 367 million.
Investment property valuing AED Nil (2011: AED 48 million) is hypothecated/mortgaged against the long term loan
taken from a bank.
13.
2012
AED000
Geographical distribution of investments:
UAE
Other GCC countries
Other countries

2012 2011
AED000 AED000

At 1 January
80,670 175,112
Additions 121,057 142,633
Transferred to investment properties (refer note 12)
(128,961) (180,356)
Cost of properties sold
(21,472) (56,719)
---------- ---------At 31 December
51,294 80,670
===== =====
(i)+(ii)
Held for trading quoted equity securities with a fair value of AED 132 million (2011: AED 166 million) is pledged in
favor of banks against borrowings availed.
*In 2011, the Company invested in a fund managed by Sarasin Alpen Partners Limited. The primary purpose
of the investment was to generate returns by leveraging the transaction with reputed banks with maturity
tenor of not more than one year. This investment has matured in the current year.
Development properties as of 31 December 2012 mainly comprise costs incurred by a joint venture entity towards
construction of Green Community West in Dubai Investment Park.
**The Company has reviewed fair value of investments in unquoted equity securities classified as fair value
through other comprehensive income and accordingly, change in fair value loss of AED 50.5 million has
been recorded during the current year (2011: AED 31.9 million).
Sensitivity analysis equity price risk

The Groups investment in quoted equity securities are listed on the Dubai Financial Market (DFM), Nasdaq
Dubai, Abu Dhabi Securities Market (ADSM), Saudi Stock Exchange (Tadawul) and Khartoum Stock Exchange
(Sudan). For such investments classified as at fair value through profit or loss, a 10% increase in any of these
stock exchanges at the reporting date would have increased profit by AED 20.04 million (2011: AED 21.5 million);
an equal change in the opposite direction would have decreased profit by AED 20.04 million (2011: AED 21.5 million).
For such investments classified as fair value through other comprehensive income, any change in fair value is
recognized in other comprehensive income and presented within equity in the fair value reserve.
31
32
PJSC
Notes (continued)
Notes (continued)
14.
Investments (continued)
14.
14.(a)
Investments at fair value through profit or loss
14.(c)
Investments in subsidiaries
The major investments in unquoted equity securities are:

Energy City Navi Mumbai Investment Company (unquoted equity security):
The Group holds investment in Energy City Navi Mumbai Investment Company, which is registered in Cayman
Islands with its head office in India. The company is established for developing commercial buildings and
residential accommodations.
Tunisia Bay Investment Company (unquoted equity security):
The Company holds investment in Tunis Bay Investment Company, registered in Cayman Islands. The company
is established for development of a financial harbour in Tunis Bay, comprising commercial, residential, tourism,
medical, educational and leisure components.
14.(b)
Investments at fair value through other comprehensive income

The major investments under this category are:
Thuraya Satellite Telecommunications Company (Thuraya) (unquoted equity security):
The Company was a founder shareholder in this project and holds 5.39% of the equity of Thuraya.
First Energy Bank (unquoted equity security):
The Group holds 5% shareholding in First Energy Bank, which is a Shariaa compliant bank based in the
Kingdom of Bahrain focused on investment, financing and service needs of the energy sector.
Islamic Bank of Asia (unquoted equity security):
The Company holds 5% shareholding in Islamic Bank of Asia, Singapore. The bank started its commercial
operations in May 2007.
Abu Dhabi Investment House (ADIH) (unquoted equity security):
The Company holds 1.84% of shareholding in ADIH, which is a Shariaa complaint investment bank based in
UAE with a focus on investment sector.
Takaful Re Limited (unquoted equity security):
The Company holds a 10% interest in Takaful Re Limited, an Islamic Re-insurance Company promoted by
ARIG.
33
The following are the investments in subsidiaries held by the Company as at 31 December 2012:
Subsidiaries: Incorporated in Ownership %
Dubai Investments Park Development Co. LLC
UAE
Dubai Investments Real Estate Company
UAE
Al Taif Investment Company LLC
UAE
Dubai Investments Industries LLC
UAE
Glass LLC
UAE
Masharie LLC (refer note (i) below)

UAE

The following are the investments in subsidiaries held by Dubai Investments Industries LLC as of
31 December 2012:
100
100
60
100
100
65
Emirates Building Systems Company LLC

Globalpharma Company LLC
The Edible Oil Company (Dubai) LLC
Marmum Dairy Farm LLC

United Sales Partners LLC
Dubai Cranes and Technical Services LLC
Emirates Extruded Polystyrene LLC
Gaussin Middle East LLC

Techsource LLC
100
100
81
100
100
80
51
51
100
UAE
UAE
UAE
UAE

UAE
UAE
UAE
UAE

UAE
The following are the investments in subsidiaries held by Glass LLC as of 31 December 2012:
Emirates Glass LLC
UAE
Lumiglass Industries LLC
UAE
Emirates Float Glass LLC
UAE
Saudi American Glass Company Limited

KSA

The following are the investments in subsidiaries held by Masharie LLC as of 31 December 2012:
Emirates Extrusion Factory LLC
Gulf Dynamic Switchgears Company LLC
Gulf Metal Craft LLC

Emirates Thermostone Factory LLC
Folcra Beach Industrial Co LLC
Gulf Dynamic Services LLC
Labtec Interiors LLC
Technological Laboratory Furniture - Manufacturers
(Labtec) LLC
National Insulated Blocks Industry (Insulite) LLC
International Rubber Company LLC
White Aluminium Extrusion LLC
Integrated Commercial Investments LLC
Techno Rubber Company

Lite-tech Industries LLC
IntlSys LLC
100
76.5
62.28
100
UAE
UAE
UAE

UAE
UAE
UAE
UAE
100
100
100
100
80
70
70
UAE
UAE
UAE
UAE
UAE
KSA

UAE
UAE
70
52
51
51
55
51
54
100
34
PJSC
Notes (continued)
Notes (continued)
14.
17.
14.(c)
Investments in subsidiaries (continued)
The Group has the following interest in finance leases:
(i) In June 2012, the Company acquired an additional 5% interest in Masharie LLC increasing its
ownership from 60% to 65%. On acquisition, the Group recognized a decrease in non-controlling
interests of AED 22.7 million and a decrease in retained earnings of AED 27.9 million.

2012 2011
AED000 AED000

(ii) During the current year, the Group has disposed investments in certain subsidiaries and jointly controlled
entities (refer note 38).
Gross investment
21,657 24,030
Unearned finance income
(4,095) (5,850)
--------- ---------Net investment
17,562 18,180
Less: classified as trade receivables on due date
(3,721) (2,346)
-------- ---------Non-current portion
13,841 15,834
===== ======
14.(d)
Finance lease receivable
Investments in joint ventures

The following are the investments in joint ventures held by the Group as at 31 December 2012:
Properties Investment LLC
Properties Investment LLC is a joint venture between the Company and Union Properties PJSC. The principal
activities of the entity are property investment, development, sale and related activities. The Group effectively
owns 50% equity in this entity.
The finance leases receivable by the Group are as follows:
Emirates District Cooling LLC (Emicool)
Emicool is a joint venture between the Company and Union Properties PJSC. The principal activity of this
entity is to distribute and sell chilled water for use in district cooling systems. The Group effectively owns 50%
equity in this entity.
Al Mujamma Real Estate Company LLC
Al Mujamma Real Estate Company LLC is a joint venture between the Group and ANC Investment LLC.
The joint venture is mainly engaged in the business of real estate including construction, demolition and
rebuilding as manager, developers, and investors as well as management and leasing of properties. The
Group effectively owns 50% equity in this entity.
Less than one year

Between one and five years
More than five years
QDI Sport Management Company LLC (QDI)
QDI is a joint venture between the Group and Al Qudra Sports Management LLC. The principal activities of the
joint venture are to engage in sports clubs and facilities management and other sports related activities. The
Group effectively owns 50% equity in this entity.

Dubai International Driving Center LLC
Investment in an associate
The Group has 30% interest in Al Taweeq Investment LLC, a limited liability company registered in the
Kingdom of Saudi Arabia.
16.
Interest
2012
AED000
Principal
2012
AED000
Minimum
lease
payments
2011
AED000
5,263
12,314
4,080
-------21,657
=====
1,542
1,277
1,276
------4,095
====
3,721
11,037
2,804
-------17,562
=====
4,183
14,360
5,487
-------24,030
=====
Interest Principal
2011
2011
AED000 AED000
1,837
3,496
517
------5,850
====
2,346
10,864
4,970
-------18,180
=====
The Groups interest in finance leases represents lease of property units to third parties which have been
classified as finance leases under IAS 17 Leases. The terms of payment range from 2 to 15 years where
substantially all the risks and rewards are with the lessee. Where the Group enters into such a lease, the Group
records a disposal of the property concerned and recognizes finance lease receivable. No contingent rent is
receivable.
This is a limited liability company registered in the UAE, the principal activities of the entity are to impart, train
and teach driving skills and to provide services of auto general repairing, vehicle maintenance and related
services. The Group effectively owns 32.5% equity in this entity.
15.
Minimum
lease
payments
2012
AED000
18. Inventories

2012 2011
AED000 AED000
Long term rent receivable (net)
Raw materials, work-in-progress and spares

(net of provision for old and slow moving inventories)
186,597 229,054
Finished goods
55,700 57,363
Goods in transit
2,658 10,978
Properties under development for sale
(net of provision for write down to net realizable value)
2,018,039 2,078,660
------------ ----------- 2,262,994 2,376,055
Less: properties under development for sale classified as non-current
(net of provision for write down to net realizable value)
(1,269,777) (1,287,894)
------------ ----------- 993,217
1,088,161
=======
======
Long term rent receivable represents the differential between the amount billed to tenants and the amount
recognized as rental income on a straight line basis over the term of the lease, including the option to renew
the lease at the end of the initial lease term, as required by IAS 17 Leases. The difference principally arises
due to an initial rent free period allowed and the rent increase agreed after the expiry of the initial term of the
lease. Rent received in advance from lessees is netted off in determining the net long term receivable as of
the reporting date.
Inventories carried at net realizable value

1,269,777 1,287,894
======= =======
35
36
PJSC
Notes (continued)
Notes (continued)
18. Inventories (continued)
21.
As at 31 December 2012, the Group is carrying a provision of AED 218 million (2011: AED 276 million) against
properties under development for sale.

2012 2011
AED000 AED000
Properties under development for sale represent cost of land and expenditure incurred towards the
development of properties for subsequent sale (including borrowing costs of AED 3.3 million). The Group
intends to develop these properties for sale and has classified certain properties as long term based on
completion/future development plans.
Cash in hand
Cash at bank within UAE (current accounts)
Cash at bank outside UAE GCC Countries (current accounts)
Short term deposits (including deposits of AED 68.91 million)
(2011: AED 52.52 million) under lien with banks)

As at 31 December 2012, the Group has reassessed net realizable values (NRV) of properties under
development for sale and due to change in market conditions, AED 22.2 million of write-down has been
reversed. Where discounted cash flows have been used to estimate NRV, the cash flows have been estimated
by the management based on the latest information available.
Inventories amounting to AED 387 million (2011: AED 249 million) are mortgaged against facilities obtained
from a bank. In certain instances, the insurance over inventories is also assigned in favor of banks.
19.
22.
Trade receivables
Trade receivables amounting to AED 99.46 million are assigned against the facilities availed from banks as at
31 December 2012 (2011: AED 189.5 million).
Non - current
Capital advance
Other receivables

Current
Other receivables and prepayments
Due from customers for contract work (refer (a) below)

31,507 38,180
124,549 7,460
--------- -------156,056 45,640
===== =====
447,187 669,244
64,162 103,365
--------- ---------511,349 772,609
====== ======
Other receivables include advances paid to suppliers amounting to AED 69 million (2011: AED 103 million) and
amount receivable from Dubai Electricity and Water Authority of AED 125 million (2011: AED 137 million) for
sub-stations constructed on its behalf in Dubai Investments Park. Other receivables that are expected to be
realized after twelve months from the reporting date have been classified as non-current.

(a) Movement in construction work-in-progress is as follows:

2012 2011
AED000 AED000
181,394 190,767
--------- --------480,740 287,280
====== ======
Long-term borrowings and payables

2012 2011
AED000 AED000

The terms of the bank borrowings vary from three to ten years. These are secured by a combination of the
Companys corporate guarantee, mortgages over certain inventories, trade receivables, property, plant and
equipment, investment properties, held for trading quoted equity securities, assignment of insurance policies
over assets of the Group and lien on bank deposits. Where there is a corporate guarantee, the Companys
liability is generally restricted to its percentage of equity interest in the borrowing entity (refer note 33).
Other receivables

2012 2011
AED000 AED000
1,711 1,235
293,756 91,436
3,879 3,842
Long term bank borrowings

1,364,680 807,590
Other payables
76,473 50,447
-------- ------- 1,441,153 858,037
======= ======
Trade receivables are stated net of provision for doubtful debts amounting to AED 133.19 million
(2011: AED 100.9 million). Trade receivables that are expected to be realized after twelve months from
the reporting date have been classified as non-current.
20.
Cash at bank and in hand
23.
Bank borrowings

2012 2011
AED000 AED000
Bank overdraft, trust receipt loans and bills discounted

310,147 583,413
Short term loans
173,143 235,350
Current portion of long term bank borrowings
(refer note (ii) below)
794,773 1,255,341
--------- ----------- 1,278,063
2,074,104
======= =======
(i) The bank borrowings are secured by a combination of mortgages and corporate guarantees. Where there
is a corporate guarantee, the Companys liability is mostly restricted to its percentage of equity interest in
the borrowing entity.
(ii) A subsidiary of the Group has outstanding syndicate loan of AED 277 million. The subsidiary is currently
in the process of finalizing the documentation for refinancing. Since the documentation has not been
concluded by the reporting date, the entire outstanding loan of AED 277 million has been classified as
current, of which, AED 253 million could otherwise have been classified as non-current had the refinancing
documentation been concluded by 31 December 2012.
Contract costs incurred

484,027 879,831
Recognized profits less recognized losses
41,113 230,502
---------- ----------- 525,140 1,110,333
Progress billings
(460,978) (1,006,968)
--------- ----------Due from customers for contract work
64,162 103,365
===== ======
37
38
PJSC
Notes (continued)
Notes (continued)
24.
28.
25.

2012 2011
AED000 AED000

Trade payables
551,711 594,591
Other payables and accrued expenses
806,064 911,922
---------- ---------- 1,357,775 1,506,513
======= =======
The Group had purchased a plot of land costing AED 5 million in 1996. In 1997, the Government of Dubai gifted
another plot of land adjacent to the existing land to the Group, which was accounted for at nominal value by
the Group. These plots of land were earlier revalued in 1999, 2003 and 2005 and 2009 by a professional firm
of independent property valuers. As the market value of these two plots of land was higher than the carrying
value as at those dates, a revaluation surplus of AED 47 million was credited to a non-distributable revaluation
reserve.
In prior years, a plot of land was gifted to the Company by the Government of Dubai (refer note 12(c)) which
was recorded as property, plant and equipment at a nominal value. Upon construction of an office cum
residential building in 2001 on the gifted land for the purposes of leasing, the land was transferred from
property, plant and equipment to investment properties at fair value in prior years. The resulting gain on fair
valuation of AED 20 million was credited to a non-distributable revaluation reserve at the time of transfer.
Share capital and share premium

2012 2011
AED000 AED000
Issued and paid up:

3,570.4 million shares of AED 1 each (2011: 3,570.4 million shares
of AED 1 each) 3,570,395 3,570,395
======= =======
For the year 2012, the Board of Directors has proposed a cash dividend of 7%.
29.
30.
27.
31.
Legal and general reserve
Basic earnings per share

The calculation of basic earnings per share is based on the profit attributable to Owners of the Company and
a weighted average number of ordinary shares outstanding calculated as follows:
In accordance with the Articles of Association of entities within the Group and Article 255 of the UAE Federal
Law No. 8 of 1984 (as amended), 10% of the profit for the year of the individual entities, to which the law is
applicable, is to be transferred to the statutory reserve. Such transfer may be discontinued when the statutory
reserve equals 50% of the paid up share capital of the respective individual entities. This reserve is nondistributable except in certain circumstances as mentioned in the above-mentioned law.
Further, in accordance with the Articles of Association of certain entities within the Group, 10% of the profit
for the year is required to be transferred to a general reserve. However, as per the Articles of Association of
these entities, the transfer may be discontinued upon a resolution passed at the Ordinary General Meeting if
proposed by the Board of Directors.
Proposed Directors fees

Proposed Directors fees amounting to AED 4.0 million (2011: AED 2.5 million), represents remuneration for
attendance at meetings and compensation for professional services rendered by the Directors. During the
current year, the Board of Directors resolved to reverse the proposed Directors fees amounting to AED 2.5
million for the year ended 31 December 2011.
Capital reserve
Capital reserve comprises the net gain on sale of the Companys own shares (treasury shares) by a subsidiary
of the Company in the earlier years.
Fair value reserve

The fair value reserve comprises the cumulative net change in the fair value of investments classified as fair
value through other comprehensive income.
In the year 1998, 5,474 unallocated shares were sold at the prevailing market price to a shareholder, at a
premium of AED 46,000.
26.
Revaluation reserve
2012 2011
Profit attributable to Owners of the Company (AED 000)

321,372 203,388
Weighted average number of shares outstanding (000s)
3,570,395 3,570,395
======= ========
32. Commitments

2012 2011
AED000 AED000
Accordingly, the companies within the Group, where applicable, have transferred amounts to legal and general
reserve.
Capital commitments contracted and committed

111,328 818,881
====== ======

This mainly includes commitment by a subsidiary for construction of warehouse facilities in Dubai Investments
Park.
Legal reserve allocation of AED 33.72 million (2011: AED 33.72 million) by individual entities which is in
addition to the legal reserve as per the Groups consolidated financial statements is included in the retained
earnings and is non-distributable.
33.
Contingent liabilities
The Company has issued corporate guarantees to commercial banks for loans and advances granted to
subsidiaries and joint ventures amounting to AED 3,035 million as at 31 December 2012 (2011: AED 2,600 million).
The borrowing against which these corporate guarantees have been issued is included in the consolidated
statement of financial position.
39
40
PJSC
Notes (continued)
Notes (continued)
34.
Lease rentals
37.
Leases as lessor
The Group leases out its investment properties under operating lease. The minimum lease payments receivable
under
non-cancellable leases are as follows:

2012 2011
AED000 AED000

Less than one year
354,806 324,178
Between one to five years
1,558,425 1,571,419
More than five years

1,806,138 2,023,465
======= =======
35.
Interest in joint ventures

The Group has interest in several joint ventures (refer note 14 (d)).
Included in the consolidated financial statements are the following items that represent the Groups interest in
the assets, liabilities, revenues and expenses of the joint ventures:

2012 2011
AED000 AED000
Non-current assets
1,172,660 1,239,807
Current assets
187,916 406,713
Non-current liabilities
(407,579) (74,654)
Current liabilities
(290,166) (802,217)
---------- --------- 662,831 769,649
====== ======
Income 358,714 589,053
Expenses (252,767) (580,121)
----------
--------- 105,947 8,932
====== ====
During the current period, a joint venture entity of the Group signed a Memorandum of Understanding (MOU)
with a customer. Under the MOU, the customer agreed to honor the commitment for the services requested but
not fully utilized in the earlier years. Accordingly, revenue amounting to AED 54 million (Groups share) has been
recognized in the current year.
During the current year, the Group has disposed its shareholding in certain jointly controlled entities (refer note 38).
36.
In June 2012, the Company acquired an additional 5% interest in Masharie LLC increasing its ownership from
60% to 65%. On acquisition, the Group recognized a decrease in non-controlling interests of AED 22.7 million
and a decrease in retained earnings of AED 27.9 million.
38.
Disposal of subsidiaries and jointly controlled entities

During the current year, the Group has disposed its shareholding in the following subsidiaries and jointly
controlled entities:
Entities Shareholding
Subsidiaries
Anchor Allied Factory Limited (Anchor Allied)
Inter Chemi International Limited (Inter Chemi)
Stromek Emirates Foundation LLC (Stromek Emirates)
Jointly controlled entities
Al Arif Contracting Co LLC (Al Arif)
(together with Al Arif Contracting LLC Abu Dhabi)
Power Factor Electromechanical Works LLC (Power-factor)

% shareholding
16,839 13,715
125 103
===== =====
50%
27 November 2012
50%
27 November 2012
Non-current assets
Current assets
Total assets
Less: non-current liabilities
Less: current liabilities
Net assets
Less: Non-controlling interests
AED000
AED000
AED000
AED000
AED000
82,544
133,145
--------215,689
---------
1,009
17,785
-------18,794
--------
15,901
121,668
---------137,569
----------
2,572
26,167
---------28,739
---------
17,904
34,717
--------52,621
--------
119,930
333,482
---------453,412
----------
(12,594)
(132,097)
--------70,998
(16,878)
------1,916
(1,204)
(53,738)
--------82,627
(2,690)
--------26,049
(62)
(15,279)
-------37,280
(13,860)
(220,682)
----------218,870
(71,561)
----------147,309
47,226
3,253
-------197,788
Consideration agreed (including contingent consideration of AED 10 million

held in an escrow account)
Short-term benefits (including proposed Directors fees)

Post-employment benefits

31 October 2012
31 October 2012
19 December 2012
AED000
The aggregate value of significant transactions with related parties during the year was as follows:

2012 2011
AED000 AED000
51%
51%
51%
PowerAnchor
Inter
Stromek
factor
Allied
Chemi Emirates
Total
50% *
50% *
51%
51%
51%
------------------------------Carrying values--------------------------------
Groups share of net assets disposed

Goodwill related to entities disposed
Expenses incurred on divestment
Compensation to key management personnel, including Directors is as follows:
Date of disposal
Al Arif
Related party transactions

The Group, in the normal course of business, carries out transactions with other business enterprises that
fall within the definition of related parties contained in International Accounting Standard 24. Related party
transactions are entered at mutually agreed terms.

2012 2011
AED000 AED000

Construction of head office building
13,033 25,498
===== =====
41
Acquisition of non-controlling interests
Net loss on disposal of subsidiaries and jointly controlled entities
(188,960)
----------8,828
=====
*Net assets of jointly controlled entities represent proportionate share of the Group
Consideration agreed
Consideration receivable at the reporting date
Net cash and cash equivalents transferred on disposal
Cash expenses incurred on divestment
Net proceeds from disposal as per statement of cash flows
188,960
(49,309)
16,839
(2,873)
---------153,617
======
42
PJSC
Notes (continued)
Notes (continued)
39.
Accounting estimates and judgments
39.
Accounting estimates and judgments (continued)
Management has reviewed the development, selection and disclosure of the Groups critical accounting
policies and estimates and the application of these policies and estimates. The following are the critical
accounting estimates and judgment used by management in the preparation of these consolidated financial
statements:
Other estimates and judgments

Management of the Group exercises significant judgment in estimating the recoverability of trade receivables.
It is reasonably possible based on existing knowledge that the current assessment and judgments used by
management as discussed above, could be subject to material adjustment in the next financial year due to
changes in estimates and assumptions underlying such assessments. Should these estimates and underlying
assumptions vary, the income statement and statement of financial position in the following years could be
significantly impacted.
Valuation of investment properties

The Group fair values its investment properties. External, independent valuation companies, having the
appropriate recognized professional qualification value majority of the properties annually. Note 4 contains
information about the valuation methodology considered by the third party valuation company.
Valuation of real estate inventories

The Group reviews its inventories to assess any loss on account of diminution in the value of real estate
inventories on a regular basis. A significant portion of the Groups inventories comprise property under
development for sale. The net realizable value estimates are subjective in nature and involve uncertainties
and matters of significant judgment and therefore, cannot be determined with precision. Where discounted
cash flows have been used to estimate net realizable values, the cash flows have been estimated by the
management based on the latest information available.
Impairment of goodwill, intangible assets and other assets

Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses (refer
accounting policy on impairment). Testing for impairment requires management to estimate the recoverable
amount of the cash generating unit to which the goodwill is allocated.
Furthermore, intangibles such as technical know-how, product distribution rights, patent, and trademark which
have limited useful life and other assets such as property, plant and equipment are tested for impairment
whenever there is an indication of impairment. Testing for impairment of these assets requires management
to estimate the recoverable amount of the cash generating unit.
Contract revenue
Revenue from contracts is recognized in the income statement when the outcome of the contract can be
reliably estimated. The measurement of contract revenue is affected by a variety of uncertainties that depend
on the outcome of future events. The estimates often need to be revised as events occur and uncertainties are
resolved. Therefore, the amount of contract revenue may increase or decrease from period to period.
Contingency provisions in project accruals

In order to recognize cost of properties sold, management needs to make an estimate of the total cost of
the project considering the fact that all the project accounts may not be finalized as at the reporting date.
These contingency provisions are initially made as a percentage of the total anticipated project cost and later
adjusted based on judgment as the project progresses.
40.
Financial instruments
Credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the reporting date was:

2012 2011
AED000 AED000

Investments 96,173 232,429
Long term rent receivable
66,143 94,926
Long term finance lease receivable
13,841 15,834
Trade receivables
1,422,169 1,568,354
Other receivables
599,846 657,975
Cash at bank
479,029 286,045
-----------
-----------Carrying amount
2,677,201 2,855,563
======= =======
The maximum exposure to credit risk for trade receivables and finance lease receivables at the reporting date
by geographic region was:

2012 2011
AED000 AED000

Domestic 1,287,010 1,437,995
Other GCC countries
90,354
83,997
Other regions
58,646 62,196
-----------
----------- 1,436,010
1,584,188
=======
=======
The maximum exposure to credit risk for trade receivables and finance lease receivables at the reporting date
by type of customer was:

2012 2011
AED000 AED000

Contracting 483,142 575,870
Real estate
394,952 366,409
Others 557,916
641,909
----------- ----------- 1,436,010 1,584,188
======= =======
43
44
PJSC
Notes (continued)
Notes (continued)
40.
40.
Credit risk (continued)
Liquidity risk
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
The age of trade receivables at the reporting date was:

Current 0 - 30 days
31 90 days
91 180 days
180 365 days
More than one year

2012
2012 2011 2011
Gross Impairment
Gross Impairment
AED000 AED000 AED000 AED000
31 December 2012
In AED 000
154,805 - 169,222
(254)
180,332 - 201,667
144,606 (291) 194,820
205,994 (28) 255,950 (19,124)
869,620 (132,869) 847,564 (81,491)
----------- ---------- ---------- --------1,555,357 (133,188) 1,669,223 (100,869)
======= ======= ======= ======
Within
1 year

Loans and borrowings*
2,642,743 (2,960,168) (1,348,185)
1,345,013 (1,345,013) (1,345,013)
Other long term liabilities
76,473
(76,473)
(34,381)
Derivative financial liabilities
Interest rate swaps
12,762
(12,762)
(12,762)
he movement in the allowance for impairment in respect of trade receivables during the year was
T
as follows:
4,076,991 (4,394,416) (2,740,341)

2012 2011

AED000 AED000
31 December 2011
In AED 000
Balance at 1 January
100,869
87,689
Impairment loss recognized
51,233 29,107
Impairment loss written-off
(18,914) (15,927)

--------- --------Balance at 31 December
133,188 100,869

===== =====
Carrying Contractual
amount cash flows
Within
1 year

Loans and borrowings
2,881,694 (3,150,123) (2,170,473)
1,493,541 (1,493,541) (1,493,541)
Other long term liabilities
50,447
(50,447)
(3,403)
Derivative financial liabilities
Interest rate swaps
12,972
(12,972)
(12,972)
he allowance account in respect of trade receivables is used to record impairment losses unless the Group is
T
satisfied that no recovery of the amount owing is possible; at that point the amount considered irrecoverable
is written off.
he Group limits its exposure to credit risk by investing with counterparties that have credible market
T
reputation. The Groups management does not expect any counterparty to fail to meet its obligations.

Cash is placed with local and international banks of good repute.
Carrying Contractual
amount cash flows
4,438,654 (4,707,083) (3,680,389)
More than
5 years
1-2 years
2-5 years
(418,644)
(27,634)
(661,342) (531,997)
(14,458)
-
(446,278)
(675,800) (531,997)
1-2 years
2-5 years
More than
5 years
(295,253)
(26,462)
(577,603)
(20,582)
(106,794)
-
(321,715)
(598,185)
(106,794)
*Also refer note 23 for details on classification of current portion of long term bank borrowings.
Market risk
Currency risk
Exposure to currency risk
The Groups exposure to foreign currency risk is as follows based on notional amounts:

2012 2011

Euro000 Euro000
1,793 2,314
Cash at bank
34 86
(4,200) (4,939)

-------- -------Gross exposure
(2,373) (2,539)
Forward exchange contracts
- (1,686)

-------- -------Net exposure
(2,373) (4,225)

===== =====
45
46
PJSC
Notes (continued)
Notes (continued)
40.
40.
Currency risk (continued)
Interest rate risk (continued)
The following exchange rates were applied during the year:
Fair value sensitivity analysis for fixed rate instruments
Average rate
Euro
2012
AED
2011
AED
4.72
====
4.88
===
Though, the Group accounts for certain fixed rate financial assets and liabilities at fair value through profit
or loss, a limited change in interest rates at the reporting date would not significantly affect the income
statement. Further, the Group does not designate derivatives as hedging instruments under a fair value hedge
accounting model.
Spot rate
2012
AED
2011
AED
4.85
====
4.76
===
Cash flow sensitivity analysis for variable rate instruments

A change of 100 basis points (bp) in interest rates at the reporting date would have increased/(decreased)
profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant. The analysis is performed on the same basis for 2011.

Sensitivity analysis

A limited fluctuation of AED against Euro at 31 December would not have any material impact on the income
statement.
Profit or (loss)
100 bp
increase
100 bp
decrease
31 December 2012
(25,180)
25,180
31 December 2011
(28,597)
======
28,597
======
Interest rate risk
Effect in AED000
The Group is exposed to interest rate risk on its interest bearing assets and liabilities. The Group manages its
exposure arising due to fluctuations in interest rates by the use of derivative instruments when appropriate.
At the reporting date the interest rate profile of the Groups interest-bearing financial instruments was:
Carrying amount
Fixed rate instruments

Financial assets
Financial liabilities
Variable rate instruments
Financial assets
Financial liabilities
2012
AED000
2011
AED000
86,686
(30,006)
======
281,275
(22,022)
======
94,708
(2,612,737)
========
(2,859,672)
========
Valuation of financial instruments

he Group measures fair values using the following fair value hierarchy that reflects the significance of the
T
inputs used in making the measurements:
Level 1: Quoted market price (unadjusted) in an active market for an identical instrument.
Level 2: Valuation techniques based on observable inputs, either directly (i.e., as prices) or indirectly (i.e.,
derived from prices). This category includes instruments valued using: quoted market prices in active markets
for similar instruments; quoted market prices for identical or similar instruments in markets that are considered
less active; or other valuation techniques where all significant inputs are directly or indirectly observable from
market data.

Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments
where the valuation techniques include inputs not based on observable data and the unobservable inputs
have a significant effect on the instruments valuation. This category includes instruments that are valued
based on quoted prices for similar instruments where significant unobservable adjustments or assumptions
are required to reflect differences between the instruments.
he table on the following page analyses financial instruments, measured at fair value at the end of the
T
reporting period, by the level in the fair value hierarchy into which the fair value measurement is categorized.
47
48
PJSC
Notes (continued)
Notes (continued)
40.
41.

31 December 2012
Financial assets at fair value through profit or loss

Financial assets at fair value through other
comprehensive income
Level 1
AED000
Level 2
AED000
Level 3
AED000
Total
AED000
326,069
87,592
187,330
600,991
--------326,069
======
--------87,592
=====
440,245
---------627,575
======
440,245
----------1,041,236
=======
There were no transfers between Level 1, 2 and 3 during the year.

31 December 2011
Financial assets at fair value through profit or loss

Financial assets at fair value through other
comprehensive income
Level 1
AED000
Level 2
AED000
Level 3
AED000
Total
AED000
348,731
214,941
233,014
796,686
---------348,731
======
---------214,941
======
492,086
---------725,100
======
492,086
-----------1,288,772
=======
2012
AED000
2011
AED000
725,100
778,495
Segment reporting
The Group has broadly four reportable segments as discussed below, which are the Groups strategic
business units. The strategic business units operate in different sectors and are managed separately because
they required different strategies. The following summary describes the operation in each of the Groups
reportable segments:
Manufacturing
and contracting
: Manufacture and sale of materials used in building construction projects,

executing construction contracts, production, pharmaceuticals,
aluminium extruded products and laboratory furniture.
FMCG
: Production and distribution of dairy products.
Investments
: Strategic minority investments in start-up ventures and IPOS, bonds,

funds and shares held for trading purposes.
Property
: The development of real estate projects for rentals and sale of

developed property units.
Information regarding the operations of each separate segment is included below. Performance is measured
based on segment profit as management believes that profit is the most relevant factor in evaluating the results
of certain segments relative to other entities that operate within these industries. There are few transactions
between the segments and any such transaction is priced on arms length basis.
Reconciliation of Level 3 fair values measurements of financial assets
Opening balance
183
1,561
Sold during the year

Net change in fair value of investments at fair value through OCI
Transfers out of Level 3
(36,160)
(50,522)
(11,026)
---------
(22,964)
(31,992)
---------
Closing balance
627,575
======
725,100
======
Purchased during the year
Fair value
he fair value of the Companys financial assets and liabilities approximates their carrying value as at the
T
reporting date.
49
50
51

Information about reportable segments
4,021,998
2,983,147
3,574,840
2,774,078
Reportable segment assets

Reportable segment liabilities
36,839
82,451
5,431
(1,370)
4,270
97,005
2012
2011
36,199
75,130
(1,626)
(889)
4,291
89,123
FMCG
354,382
5,715,356
411,550
(13,127)
84,867
391,808
331,535
7,515,331 (4,079,988) (3,723,798) 13,034,355 13,496,323

2,442,850 (1,781,469) (1,487,932)
336,246
7,741,696
2,693,161
318,568
5,607,662
464,390
(337,043)
(300,210)
4,076,991
258,523
151,167
82,510
4,438,654
157,655
159,259
(182,452)
159,259
66,562
(225,970)
151,167
54,376
(65,211)
72,638
(76,070)
24,615
2,362,520
(107,448)
2,490,488
2011
20,265
(290,765)
2012
(158,589)
(342,620)
2011
AED000
Total
3,478
556,741
631,153
270,665
2012
Elimination of inter
segment transactions
79,238
2011
Property
2012
2011
Investments
2012
The Groups revenue is mainly earned from transaction carried out in the UAE and other GCC countries.
(190,612)
(157,661)
Reportable segment profit
39,577
(131,969)
33,230
(125,522)
-
1,736,756
2011
1,713,142
2012
Gain on fair valuation of investment

properties
Finance expenses
Finance income and other income
Revenue
Business Segments
Operating segments
Manufacturing
and contracting
Segment reporting (continued)
41.
Notes (continued)
PJSC
Annual Corporate Governance Report

2012
52
PJSC
3
1
Composition of the Board of Directors
3.1 Composition
Corporate Governance Practices
The current composition of 5 (five) Board members satisfies the mandatory requirement under the Ministerial
Resolution 518/2009 i.e. at least one half of the Board to be Non-Executive and one third of the Board to be
Independent.
In compliance with the Ministerial Resolution 518/2009, Dubai Investments PJSC (DI or the Company)
issued corporate governance report for the year ended 2012.
This is the fourth Corporate Governance report prepared and duly disclosed by DI and reflects the Companys
ethos and commitment to apply sound governance rules. TheBoard believes that the driving principles of
transparency, fairness, disclosure and accountability to stakeholders have been pivotal to the performance of
the Company, its Board of Directors, its Senior Management and employees.
It is noteworthy to mention that Dubai Investment PJSCs Board of Directors have enjoyed the confidence
of the majority of the shareholders over the years and this has been demonstrated by the re-elections of the
Board Members in the past Annual General Meetings. Tabulated hereunder is the composition of the Board
of Directors for Dubai Investments PJSC during the year 2012:
During the year 2012 the Company has further enhanced its existing robust governance practices with the
development and implementation of the key initiatives summarized below:
Securities Dealing Manual: All Directors and employees are prohibited from trading in the
Companys shares during the Blackout-Period in line with requirements of Article14 of Ministerial
Resolution 518/2009. Specifically, trading guidelines for Board of Directors and employees have
been approved by the Board.
Senior/Executive Management with regards to the following activities have been formulated and
acknowledged:
Election of Board of Directors
Crisis Management (responding to market rumours)
Shareholder Query Management
Price Sensitive Information
Shareholder Meetings
Fraud Risk Management Framework has been developed and reinforced by the introduction
of an Investigations Unit which is supported by a process of self-declaration by employees of the
Company on an annual basis. TheAuditCommittee has been entrusted by the Board to oversee
the framework and the compliance thereof.
Board of Directors Disclosure
2.1
Transactions of Board members and their first-degree relatives in Companys

securities
All Board members acknowledged that neither they nor their first-degree relatives, traded in the Companys
shares during 2012, with the exception of transactions tabulated hereunder.
Board Member
Mr. Mohamed Saif Darwish Ahmed Al Ketbi
3.2
Directorship
Chairman
Independent /
Executive /
NonNon-Executive
Independent
Year
Appointed
on BOD
Independent
Non-Executive
1995
Mr. Hussain Mahyoob Sultan Al Junaidy Vice Chairman
Independent
Non-Executive
1995
Mr. Ali Fardan Ali Al Fardan
Member
Independent
Non-Executive
2002
Mr. Mohamed Saif Darwish Ahmed

Al Ketbi
Member
Independent
Non-Executive
2010
Mr. Khalid Jassim Bin Kalban
Member
NonIndependent
Executive
1998
All Board members are UAE citizens with the required skills and expertise, possessing a diversity of experience
and knowledge which benefits Board level discussions and informed strategic decision making. Their
qualifications and expertise along with current membership as Directors in any joint stock company is detailed
below:
Mr. Sohail Fares Ghanim Al Mazrui holds a University Degree in Petroleum Engineering. He has wide
The members of the Board of Directors comply with the policy related to their trading in the Companys shares
stipulated in Securities and Commodities Authoritys market control procedures and governance guidelines
by obtaining the necessary approvals from the Authorities and complying with the ban period stipulated in
Article 14 of the SCAs regulations. The Board members, also, undertake to annually disclose any trading of
Companys shares that they or their first-degree relatives execute.
53
Mr. Sohail Fares Ghanim Al Mazrui
Shareholders Communication Manual with detailed roles and responsibilities of
Name
First Degree
Relative
Mr. Al Mazrui has been on the Board of Directors of Dubai Investments PJSC since its inception in 1995 and
Chairman since 2010.
Mr. Hussain Mahyoob Sultan Al Junaidy is a Bachelor of Science in Civil Engineering as well as a
Chartered Civil Engineer. He is also a graduate of the School of Business, University of Pittsburg, USA. In the
past he has been the Chairman and CEO of a number of companies in the Oil and Gas Industry. He was also
the ex-Founder and Group CEO of Emirates National Oil Company (ENOC).
Mr. Al Junaidy has been on the Board of Dubai Investments PJSC since its inception in 1995 and ViceChairman since 2010.
Number of Shares
Total Sales
experience in Petroleum Engineering and executive experience in the Oil Industry. He is the former CEO of
Abu Dhabi National Oil Company (ADNOC) as well as the former CEO and Chairman of Aabar. He is a Member
on the Board of Abu Dhabi Securities Exchange.
Total Purchase
Father
1,210,720
3,094,433
Mother
200,000
1,198,543
Wife
400,000
500,000
Mr. Ali Fardan Ali Al Fardan is a Bachelor of Science in Management and Information System. He
has been involved with Real Estate Management, Property Investments, Capital Investment Management
and Hospitality Management. Mr. Ali Fardan is the Vice Chairman of Al Fardan Group, CEO of First Investor
LLC, and Managing Director of Al Fardan Real Estate. Additionally, he is currently a BoardMember of Union
Properties PJSC and Commercial Bank of Dubai.
Mr. Ali Fardan Ali Al Fardan joined the Board of Directors of Dubai Investments PJSC in 2002.
54
PJSC
Mr. Mohamed Saif Darwish Ahmed Al Ketbi has a degree in Business Administration majoring in
Business Management. His area of expertise is in Investments & Projects, Business Development, Real Estate
and the Hospitality Sectors. He is currently the Vice Chairman on Danat El Emarat Women & Childrens Hospital
Project and a Board Member on Tasweek Real Esate Company and Board member of AHI-Carrier FZC.
3.4
The Board of Directors is committed to the shareholders to deliver growth and performance of the Company
and consequently had convened 6 (Six) times during 2012. There was a full attendance of all 5 members of
the Board in four of the six meetings. Specifically, personal attendance record of the Directors for the meeting
is recorded below:
Mr. Mohamed Saif Darwish Ahmed Al Ketbi has been a member of the Board of Directors of Dubai Investments
PJSC since 2010.
Mr. Khalid Jassim Bin Kalban has a degree in Business Management from USA and also majored
Board Members
in management at the Metropolitan State College, U.S.A. His extensive experience covers the industrial,
financial, investment and real estate sectors. Mr. Kalban is currently the Chairman of the Board of Directors at
Union Properties PJSC and a Board member of National General Insurance PJSC.
Mar 20 Jun 24 Sep 17
Nov 4
Dec 5
Dec 26
Mr. Sohail Fares Ghanim AlMazrui

(Chairman)
Mr. Hussain Mahyoob Sultan AlJunaidy

(Vice Chairman)
Basis of Board Members Remuneration
For the year 2011, the Directors of the Board were paid an amount of AED3,360,000 inclusive of fixed annual
Directors fees and attendance fees for Board meetings and Committee meetings.
Mr. Khalid Jassim Bin Kalban
Mr. Khalid Kalban is currently the Managing Director and Chief Executive Officer of DubaiInvestmentsPJSC
and has been holding this position since 1998.
3.3
Board Meetings
The Nomination & Remuneration Committee has recommended an amount of AED4,000,000 as fixed annual
fee and attendance fee for Board members for the year2012, however, the same is subject to Shareholders
approval at the AGM.
The Company also pays additional expenses/fees or a monthly salary as specified by the Board of Directors
to any of its members if such a member (a) is working in any Committee, (b) is extending special efforts, or (c)
is performing additional work for the service of the Company, in addition to his ordinary duties discharged as
a member of the Board of Directors of the Company.
Accordingly, the total fixed annual fees and attendance fees for Board meetings and Committee meetings will
be as under:
Board/Committees
Board of Directors
3.5
The powers reserved for the Board of Directors have been explicitly stated in the Board Charter in compliance
with legislations and regulation inter alia the Companies Law 8/1984 and its amendments, the Articles of
Association of the Company and the Ministerial Resolution 518/2009.
The Senior Management is responsible inter alia for:
4,000,000
440,000
Nomination & Remuneration Committee
390,000
A. Responsibilities of Senior Management:

Senior Management is provided with delegated responsibilities to accomplish the Companys goals, objectives
and targets by implementing strategic decisions which are recommended to and approved by the Board.
Amount (AED)
Audit Committee
Roles and Responsibilities delegated to Senior Management
Creating and maintaining effective and efficient legal, organizational and governance structures;
Arranging and deploying the resources required to achieve the strategies;
Adequate planning, internal control, and risk management systems that assess risks on an integrated
cross-functional basis;
Succession planning that formalizes the process of identifying, training and placing of successors in key
positions in the Company.
The Managing Director & CEO and the Senior Management are entrusted to provide the Chairman, Board of
Directors and its Committees with sufficient documented information in due time to ensure informed decisions
are taken and for efficient performance of tasks and responsibilities.

B. Managing Director & CEO:

The Managing Director & CEO has been appointed by the Board of Directors to oversee the day-to-day
operations of the Company and to effectively execute its plans and strategies to achieve its vision, mission
and strategic initiatives. The Managing Director & CEO reports to and is accountable to the Board of Directors.
The Managing Director & CEO is responsible inter alia for:
Delivering the Companys strategic and operational plans as approved by the Board of Directors;
Escalating transactions outside of his delegated authority to the Board of Directors for due decision
making;
Ensuring compliance with the Companys policies and with the applicable laws and regulations.
55
56
PJSC
C. Managing Director & CEOs Direct Reportees
The Senior Management of the Company is stable and have been working in their respective positions for the
last several years. The direct Reportees to the Managing Director & CEO are listed below:
The Audit Committee is tasked by the Board to review the internal control environment of the Company, and
its Charter is compliant with the established requirements of the Ministerial Resolution 518/2009.
The composition of the Audit Committee is in accordance with the Ministerial Resolution
518/2009 as all members are Independent Non-Executive Directors and at least one member
has the requisite financial knowledge.
General Manager
Group Chief Financial Officer
Group Legal & Corporate Affairs Manager
Group Internal Audit Manager*
Group Human Resources Manager
The Roles and Responsibilities of the Audit Committee inter alia include:
Oversight of the preparation of the Financial Statements;
Review of the annual and quarterly Financial Statements;
Review any insider, affiliated or related party transactions and ensure that rules for the conduct and
approval of these are complied with;
Reviewing the Companys Internal Control systems for effectiveness. This may be undertaken by seeking
assistance from external consulting firms;
Ensure Risk Management policies are developed and undertake periodic examination of cases of noncompliance with the same.
*Administrative reporting to MD & CEO with functional reporting to the Board/Audit Committee
D. Senior Management Remuneration

Remuneration paid to Senior Management/Executives for 2012 are tabulated below:
Name
Designation
Mr. Khalid Jassim Bin Kalban Managing Director & CEO
Total Annual Total Annual

Date of
Salary Paid Bonus Paid
Appointment
(AED)*
(AED)
Jul 01, 1995
3,461,478
2,448,000
Oct 01, 2012
401,252**
Jan 02, 2008
771,943
148,000
Mr. Kurian Chacko
Group Legal & Corporate Affairs

May 01, 2005
Manager
851,486
154,080
Mr. Saderuddin Panakkat
Group Internal Audit Manager
Oct 03, 2005
811,705
156,000
Ms. Asma Ahmed Mohamed
Group Human Resources

Manager
Nov 01, 2012
96,590**
Mr. Abdulaziz Bin Yagub

Al Serkal
Mr. Mushtaq Masood
General Manager
Group Chief Financial Officer
* Includes allowances of furniture, car, education, tickets, general pension and social security.
** Part of the year.
3.6
Audit Committee
Stakeholder Transactions
A Conflict of Interest policy and Code of Conduct has been developed in conformity with regulatory and
professional standards. Any situation and/or circumstance wherein advantages may be presented to one or
more of the Board of Directors, either by way of opportunities or for monetary and non-monetary benefits will
be subject to the Conflict of Interest Policy. The Policy requires full disclosure of any conflict before or at the
time the conflict is identified, and in limited circumstances may require shareholder approval.
Additionally, the Audit Committee has met the external auditors in 2012 to review audit findings and matters
for attention of the Board.
Meetings of the Audit Committee

Good governance and monitoring of risk and compliance is a key directive for the Company. The tone at the
top is demonstrated by the fact that 5 (five) Audit Committee meetings were held during 2012 as opposed to
the minimum requirements stipulated by the Ministerial Resolution 518/2009.
Mr. Hussain Mahyoob Sultan Al Junaidy was nominated as the financial expert on the Audit Committee in
line with SCA requirements and also serves as the Chairman of the Audit Committee. Notably, the Audit
Committee has unrestricted access to the records of the Company and has the ability to seek expert advice
if required.
Recorded below are the dates and attendance record of the Audit Committee Members:
Member
Mar 20
Jun 24
Nov 4
Dec 5
Dec 26
Mr. Hussain Mahyoob Sultan Al Junaidy
No stakeholder transactions, other than those mentioned in this Corporate Governance

report and those listed in the Annual Financial Statements for 2012, have taken place.
External Auditors
KPMG in the UAE was established in 1974 and is part of KPMG International, a global network of professional
firms providing Audit, Tax and Advisory services, which operates in 152 countries. KPMG, over the years has
grown to 650 professional staff led by more than 20 partners, across 7 offices in the UAE.
KPMG was reappointed as DIs external auditors by the Shareholders at their General meeting for the year
2012. The External Auditors have been re-appointed at each AGM since 1996.
The fees for the external audit and quarterly review services for the year 2012 amounted to AED 503,750.
Additionally, KPMG has provided various non-audit services totalling to AED 155,977 during the year. The
Board and the Audit Committee believes that the provision of non-audit services by the External Audit firm did
not create a conflict of interest.
57
58
PJSC
6.
Nomination & Remuneration Committee
All members of the committee are Non-Executive and Independent.
The Internal Controls Department is currently enhancing its Risk Management framework to
determine, assess and manage key risks confronted by the Company. This will supplement the work by
the Risk Assessment undertaken in 2012 for the purposes of developing a risk-based internal audit plan.
During the year, 3 (three) meetings were held by the Nomination & Remuneration Committee. Recorded below
are the dates and personal attendance record of the Committee Members:
Name
Mar 20
Jun 24
Sep 17
Mr. Ali Fardan Ali Al Fardan (Chairman)
Mr. Hussain Mahyoob Sultan Al Junaidy
By virtue of the Ministerial Resolution 518/2009 and as per its duties, the Committee performed the following
tasks:
Verified the independence of the Boards members by means of a Declaration of Independence form which
was completed and signed by each independent member;
Endorsed Human Resources policies with respect to promotions, employee benefits and employee
performance evaluation;
Reviewed the Board members remuneration policy;
Verified that the remunerations and benefits granted to the Senior Executive Management are reasonable
and in line with the Companys performance;
Determined the Companys needs for competencies at the Senior Executive Management and employee
level, the basis for choosing them, as well as the employee training policy.
7.
Internal Control Systems
7.1 Declaration
The Board is pleased to inform the shareholders that it believes an adequate and effective internal control
system is in place, that no significant violations occurred during 2012, and that there are no major concerns.
To the best of the knowledge of the Board of Directors and the Senior Management, the
Company has met with all the regulations set by SCA.
7.2
Companys Internal Control Structure

The Board acknowledges that it is ultimately responsible for establishing the Companys
internal controls and reviewing their adequacy and effectiveness. TheAudit Committee is
responsible for monitoring the internal control framework and updating the Board on a quarterly basis at the
Board meetings on the resourcing, testing and effectiveness of internal controls in the Company.
DI has established and described in the Board Charter an Internal Controls Function which is responsible for
undertaking activities pertaining to Internal Audit, Risk Management and Compliance. The Internal Controls
Function has been incorporated into the Organizational Structure of the Company with a direct reporting line
to the Audit Committee and Board of Directors.
The Internal Controls department has an identified Compliance Officer who is responsible for duties
of verification of the scope of compliance by the Company and its employees with issued laws, regulations
and resolutions.
7.3
Handling of Material Issues

Depending on the nature of the issues and the level of related risks faced by the Company as well as their
impact on the financial statements, the Internal Control Department carries out the necessary analysis and
discusses them with the Executive Management and relevant stakeholders to check whether a disclosure is
needed in the financial statements. The department independently submits its findings and report to the Audit
Committee which in turn discusses them with the Executive Management and raises its recommendations to
the Board of Directors to take the necessary decisions with respect thereto.
In 2012, the Company did not confront any such significant issue(s).
8.
Details of Breaches
To the best of the knowledge of the Board of Directors and the Senior Management, during 2012 the
Company has not committed any breaches/violations.
9.
Corporate Social Responsibility

As a world-class investment company, DI contributes to sustainable development in the financial sector
by incorporating Corporate Social Responsibility (CSR) values, green initiatives and the triple bottom line
principles (social, environmental and economic) into its business strategy. The Company is fully committed to
delivering its strategy to effect change. This year proved to be the most successful to date as DI participated
in over 25 CSR programs and initiatives across four key areas:

Environment Stewardship
Community Development
Workplace Management
Marketplace
DI constantly strives to play its part by making the planet a better place to live. The year 2012 included
local, regional and international environmental activities in the recycling, energy and environmental areas.
DI is proud to have maintained several ISO standards through its subsidiaries. Committed to the protection
of the natural environment, the Company has led several initiatives to educate and provide employees with
opportunities to play their part in saving the environment.
DI also plays a leading role with the community and views this activity as an essential element to its CSR
strategy. DI continues to partner and support various social organizations and campaigns and has consistently
supported many local projects and social institutions through financial contributions or other forms of
assistance. Its initiatives also extend to DI employees who constitute the foundation of the Companys
continued success and drive to be pillars in the local community. The Company creates a safe, healthy and
enjoyable place to work. In 2012, DI held various events and programs for the staff and their families to raise
awareness and bring the Company together.
Specifically the Board has resolved that the Internal Controls function
shall be maintained independently from the operational departments of the Company;
shall be adequately resourced;
shall have unfettered access to the records and personnel of the Company;
shall report periodically to the Audit Committee and the Board; and
shall have direct reporting to SCA and regulators as and when required by Law.
The Internal Controls Department is headed by Mr. Saderuddin Panakkat, who is a Chartered Accountant and
an MBA. The Companys Internal Audit Function consists of an Internal Audit Manager and eight staff at the
DI level, plus additional internal audit staff within the Group. Some of the key initiatives of the Internal Controls
Department since the last annual report have been mentioned below:
59
60
PJSC
10
General Information
10.1
Principal Events of 2012
10.3
Dubai Investments PJSC (DIor the Company) appointed Mr. Abdulaziz Bin Yagub Al Serkal as General
Manager effective 01 October, 2012, to oversee the manufacturing companies within the DI Group as well
as be responsible for DIs international operations.
Mr. Khalid Rashed Saif Al Jarwan was appointed as General Manager of Masharie LLC (a subsidiary
company of DI) effective 01 October 2012.
DI acquired an additional 5% shares in Masharie LLC, resulting in a holding of 65% in that Company.
Also, during the year, Masharie disposed its shareholding in Anchor Allied Factory Ltd., Inter Chemi
International Ltd, Stromek Emirates Foundation LLC, Al Arif Contracting Co LLC and Power Factor
Electromechanical Works LLC.
In 2012, leasehold regulations in Dubai were amended to allow expatriates to secure long term leases in
Dubai Investments Park (DIP), a 100% subsidiary of the Company. The change in legislation allows for
existing tenants in lease brackets spanning from 30 to 60 years to enter into leases for up to 85 years.
In 2012, DIP had substantially completed the development of the Warehouse Project 2 in Phase VIII of the
Industrial Park.
During the year, Dubai Investments Real Estate Company LLC (a 100% subsidiary of DI) commenced
handover of Ritaj residential units in DIP.
H.E. Sultan Bin Saeed Al Mansoori, UAE Minister of Economy inaugurated the new Glass Coating Line of
Emirates Glass LLC (a 100% subsidiary of the Company) in DIP
DI plans to double the Emirates Float Glass (a 62.3% subsidiary) capacity to 1200 tonnes. The Company
is in discussion with international banks on the terms of reference for the funding required for the proposed
expansion.
During the year, EMICOOL, a Joint Venture Company, successfully concluded a 10 year tenor refinancing
of debts aggregating to AED 793 million.
10.2
The Companys (Maximum and Minimum) Share Price at the end of each month for the fiscal year
ending on 31 December 2012.
Closing Price at
End of
the Month
Maximum Price
During
the Month
Minimum Price
During the Month
January
0.64
0.67
0.58
1435.72
1186.74
February
0.84
0.86
0.60
1730.43
1577.60
March
0.88
1.06
0.81
1648.87
1659.49
April
0.85
0.93
0.83
1630.95
1607.92
May
0.68
0.84
0.66
1471.49
1316.79
June
0.69
0.70
0.65
1451.87
1330.57
July
0.72
0.74
0.68
1542.64
1378.39
August
0.74
0.78
0.72
1547.82
1381.20
September
0.81
0.85
0.73
1578.79
1469.43
October
0.89
0.91
0.80
1619.61
1574.48
November
0.86
0.90
0.83
1607.90
1526.49
December
0.85
0.87
0.82
1622.53
1535.37
Month
Market
Index
The graph depicted below indicates the performance of the Company Closing Share Price for 2012
against the DFM General Index and the Index of Financial Investment Sector for 2012.
10.4 Distribution of Shareholdings on December 31 2012, 3,570,395,400 shares were held by 19,252
shareholders. The shareholder mix is depicted in the charts below.
19,022 Individuals held 2,247,181,941 shares of which Mohamed Saif Darwish Ahmed Al Ketbi held 5.08% of
the total shares of the Company on December 31, 2012. Theshareholder mix is depicted below:
10.4
Distribution of Shareholding
As on 31 December 2012, 3,570,395,400 shares were held by 19,252 shareholders. The shareholder mix is
depicted in the charts below.
19,022 Individuals held 2,247,181,941 shares of which Mohamed Saif Darwish Ahmed Al Ketbi held 5.08%
of the total shares of the Company on 31 December 2012. The shareholder mix is depicted below:
Sector
Index
Individuals - Number of Shares
National
Arab
Foreign
National
Gulf
Arab
Foreign
20 Banks held 108,224,435 shares. The shareholder mix is depicted below:

Banks - Number of Shares
National
61
Gulf
Individuals - Number of Shareholders
Gulf
Arab
Foreign
Banks - Number of Shareholders
National
Gulf
Arab
Foreign
62
PJSC
196 Companies held 568,141,278 shares of which Al Fardan Real Estate LLC held 6.05% of the total shares
of the Company on December 31, 2012. The shareholder mix is depicted below:
Companies - Number of Shares
National
Gulf
Arab
Foreign
Companies - Number of Shareholders
National
Gulf
Arab
Foreign
Additionally, 3 UAE Government entities and 11 UAE Institutions held 426,999,019 shares and
219,848,727 shares respectively. Investment Corporation of Dubai held 11.54% of the total shares of the
Company on 31 December 2012.
Signed : Chairman Seal of Company
Dated: 27 March 2013
63
Corporate Social Responsibility Report

2012
64
PJSC
CSR Approach
As a world-class investment company, Dubai Investments contributes to sustainability development in the
financial sector by incorporating corporate social responsibility values, green initiatives and the triple bottom
line of social, environmental and economic sustainability to its business strategy. Dubai Investments is fully
committed to their corporate social responsibility plan. They have contributed to the development of local
communities, society and the environment by participating in over 25 programs and initiatives during 2012.
In addition, Dubai Investments maintains several ISO standards in Quality Management System (QMS), an
Environmental Management System (EMS) and an Occupational Health and Safety Management System
(OHSAS) in complying with ISO 9001, ISO 14001 and OHSAS 18001 accreditations. This report covers the
four key focus areas:

Environment Stewardship
Community Development
Workplace Management
MarketPlace
1. Environment
The environment is a key concern and the business constantly strives to play their part in making the planet
a better place to live. This year included local, regional and international activity looking at recycling, energy
and environmental performance. Dubai Investments is proud to have achieved and maintained several ISO
standards through its subsidiaries. These ISO standards include Quality Management System (QMS), an
Environmental Management System (EMS) and an Occupational Health and Safety Management System
(OHSAS). These certificates are clearly displayed in each of their offices to show their compliance with ISO
9001, ISO 14001 and OHSAS 18001 accreditations. Committed to the protection of the natural environment,
Dubai Investments has led several initiatives to educate and provide employees with opportunities to play
their part in saving the environment.
Paper and Stationery Recycling

Dubai Investments is fully committed to achieving the companys CSR goals. Sustainable practices, such
as weekly recycling of newspapers in the office and printing all company-branded literature and newsletter
on recycled paper are carried-out through the year. Dubai Investments will also continue discussions and
developments on creating a more sustainable environment in the workplace.
Safety Design in Buildings

As part of their social responsibility, Glass LLC periodically facilitates thought-leadership forums for
knowledge-sharing and to enhance industry practices in the region. Glass LLC organized a conference
series examining Safety Design in Buildings. Supported by the Glass and Glazing Federation (GGF), the
three-city series gathered industry insights into the concerns and safety practices surrounding building
design. The event discussed the new era of developing fire strategies in the UAE, perimeter joint fire
protection in curtain walls, cable safety, fire in buildings, specifications and value engineering.
E-waste Recycling
Dubai Investments partnered with IndustryRE, a sustainability consultancy to reduce e-waste. IndustryRE
provided recycling boxes for print cartridge recycling throughout Dubai Investments facilities. These
boxes were collected on a quarterly basis to avoid unnecessary waste and environmental damage. All the
transportation costs were offset by carbon credits and the process avoids harmful plastics, metals and
chemical entering into the waste stream. All of the e-waste is responsibly recycled and reused back in
secondary manufacturing activity, reducing waste, carbon and water use.
Safety Education Week for Elementary Schools

Dubai Investments supported the Dubai Police initiative, Tarbia Amniya Safety Education Program which
educated students, parents and schools on obesity awareness, saying no to strangers, self-defense, cyber
safety, protecting the environment, and first aid to create a safer community. The initiative linked all schools
65
across the emirate and campaigned for students to develop a lifelong commitment to the community. It
promoted skills, attitudes and values that encourage responsible behavior throughout different stages of
the students lives.
World Environment Day 2012

Dubai Investments believes we all have a role to play. Dubai Investments theme for 2012 was aligned with
the United Nations Environment Programmes (UNEP) theme of the Green Economy: Does it include you.
The UNEP theme highlights the need for inclusive contributions from individuals and businesses towards
the establishment of a green economy. Dubai Investments held an event for their employees, which offered
an insight into the green office concept. Dubai Investments gathered leading speakers to inspire their
employees to make a difference. The training workshop was designed to create sustainable environmentalfriendly office atmosphere for employees. The sessions identified methods to be implemented by the
employees to Reduce, Reuse and Recycle. The children of Dubai Investments employees were also asked
to submit their entries on an environment based theme. All the participating children were rewarded and 12
entries were selected for the Dubai Investments Corporate Calendar 2013.
In conjunction with the Ministry of Education (MoE), Dubai Investments also hosted an exclusive interactive
programme for primary and middle school students in Dubai. The comprehensive initiative engaged
students in educational and entertaining activities that raised awareness on some of the key environmental
issues. Over 100 students between the ages of 8-12 participated in the event. The event focused on
the conservation of eco-systems, water pollution, harmful effects of acid rain, a clear understanding of
greenhouses. The students also acquired practical insights on the advantages of active recycling and
effective waste management.
World Energy Forum 2012

Dubai Investments sponsored this years World Energy Forum, a high level international energy conference
which took place for the first time outside the headquarters of the United Nations. Held at the Dubai
International Convention and Exhibition Centre, the theme, A Forum for World Leaders attracted over 2000
high profile attendees, including heads of state, national energy ministers, international organisations and
top business leaders from the industry. The aim was to develop a roadmap for a sustainable energy mix
that can fuel global economic and social development, benefiting all nations and promoting a new culture
for a sustainable global energy mix, which supports the world economy and all member states of the United
Nations.
Carbon Management Program

Emirates Float Glass (EFG), a subsidiary of Dubai Investments, has unveiled its Carbon Management Program
as part of an endeavor to reduce its overall carbon footprint. Taking the first step, EFG appointed sustainability
consultants Green Technologies to conduct a carbon footprint analysis of its world-class manufacturing
facility in Abu Dhabi. The study, based on the Greenhouse Gas Protocol, a corporate accounting and reporting
standard from the World Resource Institute and World Business Council for Sustainable Development,
indicated 553 grams of carbon dioxide emission per kilogram of glass, which is amongst the best global
ratings. Float glass produced by EFG contains 59-67% regional raw material which is in line with the US Green
Building Councils LEED Rating System for new construction. EFG procures local materials from neighbouring
facilities in the UAE, Oman, and Saudi Arabia. This allows the company to qualify for LEED points under
materials credit MRc5: Regional Materials. Additionally, EFG uses 6.20% post-consumer recycled content,
contributing further to the LEED Materials Credit MRc4: Recycled Content.
2. Community
Dubai Investments is committed to contributing to the community and views this activity as an essential
element of its CSR strategy. Dubai Investments continues to partner and support various social organisations
and campaigns and is proud to be part of the UAE community. Dubai Investments has consistently supported
these projects and social institutions through financial contributions or other forms of assistance. Its initiatives
also extend to Dubai Investments employees who constitute the foundation of the companys continued
success and drive to be pillars in the local community.
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Operation Smile Fundraiser

Dubai Investments supported Operation Smile that helped raise money for this great cause. Every three
minutes a child somewhere in the world is born with a cleft. One in 10 will die before their first birthday.
Many of the children who survive live their lives in shame, hiding their faces because of this tragic deformity.
Operation Smile was founded on the belief that no child should suffer or die because of a facial deformity.
Operation Smile is an international childrens charity committed to saving lives and allowing children with
clefts to smile properly for the first time. They do this by providing free surgeries and after care to those
affected. Since their founding in 1982 they have provided more than 200,000 free surgeries to children and
young adults around the world and over 2 million comprehensive healthcare evaluations.
Tamiaz and Falak Tayyeb Award for UAE National Varsity Students
Recognising the need to support further education and excellence, this initiative is a great step towards
achieving the governments Emiratization policy. Dubai Investments extended their support once again
this year. The award categories include media, marketing and sales, graphic design and photography,
management and leadership, community and environment, science, technology and inventions, as well
as business and finance. Thirty four UAE nationals from local universities were awarded the Tamiaz and
Falak Tayyeb Award for vocational excellence in these diverse disciplines.
Established under the patronage of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum,
Deputy Ruler of Dubai, the award aims to support talented young citizens and equip them for the skills to
be the leaders of the future.
41st National Day Celebration

Dubai Investments celebrated the 41st Anniversary of the UAE at its headquarters at Dubai Investments
Park with a week full of traditional and cultural activity. The full building was draped with UAE flag colours
and Spirit of the Union branding. The employees were welcomed with national songs, a majlis was set up
and the main entrance was filled with the authentic Oud essences. Employees and visitors were received
with a warm welcome and gifted with traditional giveaway.
Employees and visitors were entertained by the performance of an Ayyala Band which is a traditional music
band that plays traditional songs. Another activity included live traditional cooking that included Gemat
(dumplings), and assorted Regag (thin bread) and Chebab (pancakes).
Blood Donation Camp

Dubai Investments organized a blood donation camp in response to the call from His Highness Sheikh
Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to
donate blood especially for emergency medical cases. Held at the companys headquarters, in conjunction
with the Ministry of Health, the campaign saw more than 100 Dubai Investments employees and other
Dubai Investments Park tenants volunteering to donate blood.
Emirates Association of Blind International White Cane Day

Dubai Investments supported the Zayed University initiative to celebrate the third annual White Cane Day to
raise crucial awareness about visual impairment. The event was designed as an interesting day of activities,
enlightening workshops and exciting competitions on both Abu Dhabi and Dubai campuses. During the
event, speakers stressed the importance of spreading awareness regarding visual impairment in the
community, and shed light on the most recent and updated methods that help facilitate the development
of visually impaired students, and provide them with the opportunity to grow and fulfil their aspirations in a
safe learning environment. The day entailed a set of insightful workshops, competitions and presentations
that better introduced the audience to visual impairment and to various means to support this cause.
Student Internship Program

Emirates Glass supported BITS Pilani University (Dubai Campus) and Lebanese American University
in Lebanon to run internship for their students. The program has now seen 13 students complete the
internships since 2011. The students are completing stages PS I and PS II qualifications. Those who are
67
on PS I are in their first year of university. Each student had to finish two months of training to reach this
qualification. The students who are working towards PS II are 4th year students and to qualify they had to
complete six months of training. The students were from different nationalities including local Emiratis.
Ousha Bint Hussein Cultural Centre

Dubai Investments supported the 20th anniversary of the centre where talented individuals with special
needs were honored and awarded. Rewaq Ousha is a charitable and non-profit cultural organization which
supports and cares for orphans and children with special needs. Dubai Investments also supported their
initiative to provide meals to 600 fasting, needy and low income people in the month of Ramadan.
Khorfakkan Club for the Handicapped

Dubai Investments supported the Khorfakkan Club for the Handicapped which is an institution that caters
to the needs of handicapped people and aims to prove to society that being handicapped is an ability, and
not a disability. Dubai Investments helped fund printing the Quran in Braille for the blind people in the UAE
as well as other countries in the Middle East and Asia.
Zakat Fund of Beit Al Khair Society

Dubai Investments supported Zakat Fund of Beit Al Khair Society where they support elderly, frail and
retired people in difficulties.
Social Solidarity Fund

Dubai Investments supported the Social Solidarity Fund which takes care of orphans, juvenile delinquents
and children in the drug rehabilitation programs.
Dubai Autism Centre

Dubai Investments provides on-going support to the humanitarian initiatives carried out by Dubai Autism
Centre. The service provided by the centre includes highlighting proactive measures in dealing with autism
and individuals affected by the condition.
Dubai Cares Walk for Education Campaign

Continuing to deliver on its commitment to support humanitarian initiatives, Dubai Investments
participated in Dubai Cares Walk for Education. The walk aimed to raise awareness among participants
concerning childrens access to primary education in developing nations. It highlighted the importance
of primary education in breaking the cycle of poverty and also emphasized Dubai Cares efforts in
developing and implementing valuable education programs. The three kilometers walk along Jumeirah
Beach Road highlighted a fraction of the difficulties children face in the rural community where they are
forced to walk more than six kilometers every day to attend school.
Art of Investment Conference to Educate University Students

The business organized an Art of Investment conference for 150 university students from across the UAE.
The various sessions allowed the students to gain greater insight into specialized investment areas such
as foreign investment in the UAE, investment structures, portfolio management, derivatives investment
techniques, valuation methods and investment funds. The event drew the participation of a host of
universities including the UAE University, Dubai Womens College, Sharjah University, Zayed University,
American University of Dubai, University Of Wollongong and Dubai London Business School.
The conference discussed the fundamentals of successful investments and the strategies that have
made Dubai a global financial city for investment. The seminar was headlined by the MD & CEO of Dubai
Investments, Mr. Khalid Bin Kalban, who also highlighted the Groups strategies that contribute to its success.
The senior managers of the company gave their first-hand knowledge of the investment process for various
sectors including manufacturing, real estate, finance and private equity. Keynote speaker, Dr. Tim Rogman,
Assistant Professor, College of Business at Zayed University, discussed and shared his research findings
titled The Environment for Direct Investment in the UAE and the Middle East. The event finally included
the launch of a book commissioned by Dubai Investments. Titled Whats Investment, the publication
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focuses on stock market investment strategy, private investment business plan, investment valuation
fundamentals, corporate finance analysis and fund monitoring performance. During the conference, an
overview of the book was presented by the co-author Dominic Chikani, business professional and board
advisor to international groups.
CBD Youth Athletics Competition

Marmum, a subsidiary of Dubai Investments, in collaboration with Dubai Sports Council, supported this
years Youth Athletics Competition. Marmums nutritious and refreshing products were distributed amongst
the participants.
We Care Campaign
Marmum sponsored the Ministry of Healths We Care campaign to encourage UAE residents to adopt
a healthier lifestyle during the Holy Month of Ramadan. The Ramadan We Care stand featured a zone
focused on disease prevention and control, as well as everyday health and wellbeing. The campaign aimed
to highlight the need to carefully monitor a range of diseases throughout Ramadan, in addition to offering
tips to manage and prevent ailments. Additionally, visitors to the stand gained tips from experts on holistic
wellbeing along with details of products that can help promote a better lifestyle.
Collaboration with Labour Affairs

Marmum coordinated with the Permanent Committee for Labour Affairs in Dubai to give away boxes
containing Marmum juices to labourers. The refreshing hampers were handed out to the outdoor workers
during the midday break enforced in summers.
Scholarship Program
Marmum Dairy Farm, successfully completed its ambitious scholarship initiative awarding AED 500,000 to
students in the UAE. The programme extended actual annual fees to 50 school students for the year 20122013 with a maximum limit of AED 10,000.
Marmum Dairy received an overwhelming response from participants who entered the draw by sending
an alphanumerical number printed on popular products of the brand including Marmum milk and ProActiv
probiotic laban. The winners were chosen through a fully computerized draw each week. The business
believes that education is the right of every child, and a stepping stone to success for the individual and
the nation. The scholarship program is an important step towards this end. The program received wide
participation from across the seven emirates, with representation from different nationalities including
Emiratis, Egyptians, Lebanese, Syrians, Indians and Pakistanis. The winning students are enrolled at
leading schools such as Our Own English High School, Dubai; Wesgreen International School, Sharjah;
English Speaking School, Ras Al Khaimah and Al Manahil Private School, Al Ain, among others.
Smile on the Face Campaign

Marmum Dairy teamed up with the Community Development Authority (CDA) to offer labourers in Dubai
wholesome and delicious Iftar during the Holy Month of Ramadan. The Smile on the Face campaign
distributed Iftar meal boxes during every Friday of the Holy Month. The campaign reached over 10,000
labourers in Dubai during the month of fasting. Each meal box contained food, water, juice, fruits, and
toiletries including soap, shaving kit, shampoo, talcum powder, cream, body lotion and toothbrush. As part
of its humanitarian activities during the Holy Month of Ramadan, Marmum also partnered with the Human
Appeal International (HAI) to supply dairy products to over 2,500 families and orphans in the UAE.
3. Workplace
The business creates a safe, healthy and enjoyable place to work. This year, there were events and programs
for the staff and their families to educate, raise awareness and bring the company together.
69
Family Day
The employees at Dubai Investments group office took time off from their busy schedules to enjoy a
day of fun with their loved ones on Dubai Investments Family Day. The day was marked with colourful
performances by dance troupes from different parts of the world. The children were welcome to attend the
event in their traditional attire to add flavour to the day. In addition, designated play areas and live cooking
stations were available throughout the day, making it an experience to remember for all.
Chair Yoga
Dr. Vishwas Chabbra, a yoga expert, conducted a session of Chair Yoga for Dubai Investments
employees. This innovative facet of yoga augments health through some amazing adaptive postures that
can be effortlessly practiced sitting on a chair or standing with its support and can be done anywhere like
in the office, in an airplane or at home. These exercises help in improving productivity, avoiding backaches
and improving sitting postures.
Dubai Drums
Dubai Investments organized a team building session with Dubai Drums. Dubai Drums musical magic
left participants on a high with a lasting memory of fantastic fun and group unity. Such events promote
employee enthusiasm and provide a memorable bonding experience. The event saw avid participation by
Dubai Investments group employees and enhanced team synergy and positivity.
Health Awareness and Health Check-up Campaign

Dubai Investments Park initiated a health awareness campaign for Dubai Investments Group employees.
Emily Hartman, a dietician at Welcare Hospital, conducted a session for the employees and shared tips on
healthy eating. She educated individuals about their health and promoted healthy eating habits. Post talk
session, the hospital conducted free screening tests for employees like blood cholesterol, blood sugar, blood
pressure and BMI.
Feng Shui workshop

A Feng Shui workshop was organized with Shivani Adalja, one of the leading new age wellbeing consultants
in the Middle East. The session was named as Come and learn how to balance your immediate environment
with the help of ancient science of Feng Shui. The participants learnt about Feng Shui; an ancient art and
science developed over 3,000 years ago in China. It is a complex body of knowledge that reveals how to
balance the energies of any given space to assure health and good fortune for people inhabiting it. The
session helped the participants understand what Feng Shui is and how it affects and helps in everyday
life. Participants learnt how to organize personal space and clutter by reorganizing their lives and also,
implement the 10 rules of Feng Shui at work.
Fitness First workout Session

Dubai Investments, in a drive to promote fitness and exercise regime, conducted through Fitness First, a
special work-out session for Dubai Investments group employees. This was held in the green area around the
head office. The employees enthusiastically participated and benefited from the expertise of the specialized
trainers.
4. Marketplace
Illegal Hawkers in Dubai Investments Park
Dubai Investments Park, a subsidiary of Dubai Investments, participated in a one-day campaign to remove
illegal hawkers. The joint campaign with Dubai Municipality and Dubai Police to curb illegal hawking seized
over 3.5 tonnes of spurious goods from Dubai Investments Park and the neighboring areas. During the one-day
initiative, unlicensed edible food items were appropriated from trucks and the back seat of cars. Additionally,
cases were filed against 16 offenders while nine illegal immigrants were identified. The operation saw Dubai
Investments Park providing full logistical support to its employees who were nominated as volunteers for
detecting the hawkers. Dubai Investments was committed to supporting Dubai Police and Dubai Municipality
in their drive to weed out illegal vendors from Dubai Investments Park.
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Dubai Investments Annual Report 2012

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Dubai Investments Annual Report 2012

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Annual

Consolidated Financial Statements

Consolidated Income Statement -------------------------------------

Consolidated Statement of Comprehensive Income ---------------

Consolidated Statement of Financial Position ----------------------

Consolidated Statement of Cash Flows -----------------------------

Consolidated Statement of Changes in Equity ----------------------

Annual Corporate Governance Report --------------------------------------

Corporate Social Responsibility Report ------------------------------------

Directors Report (continued)

Mr. Sohail Faris Ghanim Al Mazrui

Transfer to legal reserve

Sohail Faris Ghanim Al Mazrui

The Directors propose a cash dividend of 7% to the shareholders of the Company.

Dubai Investments PJSC and its subsidiaries

for the year ended 31 December

Profit for the year

Dubai Investments PJSC and its subsidiaries

Dubai Investments PJSC and its subsidiaries

Consolidated statement of comprehensive income

Consolidated statement of financial position

for the year ended 31 December

Profit for the year

Owners of the Company

Total non-current assets

Total current assets

Sohail Faris Ghanim Al Mazrui

Ali Fardan Al Fardan

Khalid Jassim Kalban

The independent auditors report is set out on page 3.

Cash flows from operating activities

Operating profit before changes in working capital

Net cash from operating activities

Cash flows from investing activities

Net cash used in investing activities

Cash flows from financing activities

Net cash used in financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at 1 January

Cash and cash equivalents at 31 December

Cash and cash equivalents comprise following:

The independent auditors report is set out on page 3.

---- ------------- ---------20,339

---- ----------------------- ----------

-------- ----------------- ---------20,339

-------- ----------------- ----------------- --------67,000 (56,785)

-------- ----------------- ----------

-------- ------------------------------- ----------

Balance at 31 December 2011

Total transactions with owners

Total change in ownership interests in subsidiaries

Changes in ownership interests in subsidiaries

Total contributions by and distribution to owners

Transactions with owners, recorded directly in equity

Total comprehensive income for the year

Total other comprehensive income

Net change in fair value of investments at fair

----------------------------------Equity attributable to owners of the Company------------------------------

Total comprehensive income for the year

Balance at 1 January 2011

for the year ended 31 December 2011

Consolidated statement of cash flows

Consolidated statement of changes in equity

Dubai Investments PJSC and its subsidiaries