FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2009
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
At 31 December 2009
13. CONTRACT RECEIVABLES AND RETENTIONS
AED'000
Contract receivables
630,386
Retentions receivable
367,738
Provision for receivables
(14,258)
---------------------
983,866
=================
Contract receivables and retentions receivable include AED 15,572 thousand due from certain customers of Drake & Scull
International L.L.C (Abu Dhabi). The subsidiary commenced legal proceedings against these customers claiming
compensation of AED 19,700 thousand for the work performed and delays caused by the customers. The legal cases are
yet to be decided upon by the concerned court. Management, based on advice received from the subsidiary's legal advisor,
expects a favorable outcome and is confident of recovering at least the amount recorded as receivable at the statement of
financial position date.
Gross contract receivables and retentions receivable include AED 207,776 thousand and AED 145,410 thousand respectively
assigned in favor of the Group's bankers as security against facilities granted to the Group (note 24).
Retentions receivable represent contract retentions due from customers. Retentions receivable include AED 161,463
thousand due more than twelve months after the statement of financial position date.
As at 31 December 2009, contract and retention receivables at nominal value of AED 14,258 thousand were doubtful
and provided for. Movements in the allowance for doubtful contract and retention receivables were as follows:
AED'000
Transferred from LLC (note 3.1)
12,964
Acquisition on business combination (note 3.2 & 3.3)
2,600
Provided during the period
5,027
Unused amounts reversed
(2,034)
Written off during the period
(4,299)
-----------------------
14,258
===============
At the statement of financial position date, the ageing of unimpaired contract and retention receivables is as follows:
Neither
Past due but not impaired
past due
----------------------------------------------------------------------------
nor
<30
30-60
60-90
>90
Total
impaired
days
days
days
days
AED'000
AED'000
AED'000
AED'000
AED'000 AED'000
31 DECEMBER 2009
983,866
526,980
147,447
111,454
25,892 172,093
===========
===========
===========
============
=========== ===========
Unimpaired receivables are expected, on the basis of past experience, to be fully recoverable. It is not the
practice of the Group to obtain collateral over receivables.
Drake & Scull
ANNUAL REPORT 2009
Drake & Scull
ANNUAL REPORT 2009
97