2. Examining the nature of DAMAC’s properties and services, it has been highlighted, both by the annual report for 2014, as well as the company website, that it is that their focus is primarily on luxury residences. DAMAC boasts of a mixed portfolio, with an extensive range of luxury property ranging from hotels, hotel apartments, private apartments and even has an extension which deals with branded developments which …show more content…
According to DAMAC Properties' statement of cash flows as presented in the Annual Report for 2014, the major sources of financing that contributed to cash flows include:
Bank Borrowings during the year(amounting to 75.3 million USD in 2014)
Net Proceeds from issuance of Sukuk certificates(amounting to 643.7 million USD in 2014)
Note 14 and Note 15 in the Annual Report for 2014 provide details with regard to the sources of financing mentioned above.
According to DAMAC Properties' Annual Report for 2014, the company mentions entering into transactions with other entities and companies which follow the relationship as with a related party, as indicated by IAS 24 Related Party Disclosures.
These related parties include those entities which are under common ownership and/or control and management. The other group of related parties include key personnel in management as well as partners.
It is specifically mentioned that all terms and conditions and prices of goods and services provided to or obtained from related parties are decided by the …show more content…
Short term employee benefits provided to this category aggregated to 2.4 million USD in 2014 and termination benefits for EOSB amounted to 0.1 million USD in 2014.
According to Note 3. Section 3, in DAMAC Properties' Annual Report for 2014, there have been two significant events mentioned with respect to transfer of ownership interest and liquidation.
During the year 2014, it has been indicated that ownership interest in the below listed subsidiaries were transferred to the CEO. The consideration paid for this ownership transfer has been described to be equal to the book value of the specific subsidiaries. These subsidiaries include Sadaf Investment Limited, Daman Holding Limited and Accredited Holding Limited.
The second major event is the liquidation of DAMAC's subsidiary, namely Star Luxury LLC, which had been operating in Russia as a sales office.
Previous year 2013 can mention
According to Note 23 in DAMAC Properties' Annual Report for 2014, contingent liabilities exist in the form of bank guarantees amounting to USD 239.8