Re: Imran Khan lost donation money in real estate gambling: Khawaja Asif
Excerpts from SKMT's audited financial statements (http://www.shaukatkhanum.org.pk/images/skm_img/downloads/Audits/financial10.pdf) below. What the N**ra League monkeys said was repetition of the following but with a very negative spin on it. Low life cheapsters. Also, the 2010 accounts were published in October 2011, ie, less than a year ago. The 2011 accounts should appear around same time, October 2012.
11. Investments
11.1 These have been specifically invested for Physician's endowment fund and Clinical research fund as disclosed in
note 19.
11.2 Return on investments held to maturity ranges from 14.86% to 16.44% per annum.
11.3 Included in these are 5,100 units held by the Trust that are in the name of the donor of this investment.
11.4 This represents investment in 3,000,000 class 'B' ordinary shares of USD 1 each of Cinnabar International Services
Limited (CISL), a company incorporated in British Virgin Islands (BVI). The Trust owns the entire class 'B' ordinary share
capital of the company, which do not carry any voting rights in the company. Consequently, the Trust does not have
significant influence over the company due to which the company is not considered an associate of the Trust. This
investment has been made through an investment company, HBG Management Partners Limited, based in Dubai, United
Arab Emirates. Further, CISL is a subsidiary of HBG Investment Holdings Limited ('HBG').
CISL owns 3,000 shares as at December 31, 2010 in Sugarland Real Estate (BVI) Limited, a special purpose entity
incorporated by HBG to undertake the development of a real estate project in Oman. Sugarland Real Estate (BVI) Limited is
also a subsidiary of HBG. The land purchased and development costs for the project are currently appearing in the financial
statements of Sugarland Real Estate (BVI) Limited at an aggregate cost of USD 28.323 million reduced by an impairment loss
of USD 18.256 million, thereby resulting in a carrying amount of USD 10.067 million as at December 31, 2010.
The land represents capital contribution in kind by one of HBG Group's shareholders, Sheikh Salim Al Mashani ('the
shareholder'). [HI]
HBG's management have assessed the realizable value of the plot of land at December 31, 2010 by
obtaining market valuation from an independent valuer and noted a decline in the value of the plot of land by USD 18.256
million, which is to be adjusted through reduction of capital contributed by the shareholder by virtue of an agreement with
him. In accordance with the agreement with the shareholder dated December 15, 2010, the shareholder agreed for a
reduction in his capital contribution commensurate with the reduction in the value of land which shall mutually be agreed
between HBG and the shareholder. HBG's management is currently into advanced stages of negotiations with the
shareholder to agree a final revised value of the plot of land, after which a resolution shall be passed at an extra-ordinary
general meeting of the shareholders to effect the capital reduction. Based on the above, the carrying value of the plot of
land has been adjusted based on the independent valuation obtained as of December 31, 2010 against proposed
reduction in the capital by an equivalent amount in the financial statements of Sugarland Real Estate (BVI) Limited for the
year ended December 31, 2010.
[/HI]In line with the requirements of IAS 39 Financial Instruments: Recognition and Measurement, the Trusts management
has assessed whether there is an indication that the Trust's investment is impaired as at December 31, 2010. Under the
above circumstances, the Trusts management feels that there is no indication that the investment is impaired since the
impairment loss on the abovementioned land would be borne by the shareholder. However, based on the decline in the
project lands value, the Trusts management performed a further evaluation by reviewing the recoverable amount of the
asset (the project) by reference to the present value of expected future cash flows. The estimation of revenues on unsold
properties depends on demand and market conditions. Based on these, the Trusts management is of the opinion that the
net realizable value of the project upon completion of development will be higher than its carrying amount as at December
31, 2010. Consequently, no provision for impairment has been recognized in these financial statements as at December
31, 2010.
