McConnell Dowell 2018 Annual Review

26 All figures are in A$ 000’s 2018 2017 11. Investments in and Loans to Associates (a) Investment details Unlisted Investment in Dutco McConnell Dowell Middle East LLC 1,066 1,669 Loan to Dutco McConnell Dowell Middle East LLC 1,842 3,540 NET INVESTMENT IN AND LOANS TO ASSOCIATES AND OTHERS 2,908 5,209 Dutco McConnell Dowell Middle East LLC (DMDME) is an unlisted company based in Dubai in the United Arab Emirates. Subsidiaries of DMDME include McConnell Dowell Abu Dhabi LLC based in Abu Dhabi, Dutco McConnell Dowell Qatar LLC based in Qatar, Dutco McConnell Dowell Saudi Arabia LLC based in Saudi Arabia, Dutco McConnell Dowell Fabrication LLC based in Qatar and McConnell Dowell Gulf LLC based in Oman. The principal activities of the DMDME and its subsidiaries are civil, pipeline, mechanical, tunnelling & fabrication engineering and construction. The Group has a 50% share of DMDME and its subsidiaries. The loan to DMDME has no fixed maturity date and is non interest bearing. (b) Summarised financial information Dutco McConnell Dowell Middle East LLC has a 31 December year-end (inline with the local shareholder). This differs from the year-end of the Group. Dutco McConnell Dowell Middle East LLC has the same accounting policies as the Group. The Group' s share of bank guarantees issued by Dutco McConnell Dowell Middle East LLC is $3.9 million (2017: $8.1 million) for which no liabilities are expected to arise. There are no capital commitments as at balance date Profits from the associate cannot be distributed without the consent of both the Group and the local shareholder. The following table illustrates summarised information of the investment in Dutco McConnell Dowell Middle East LLC: Unlisted Carrying amount of the investment At the beginning of the year 1,669 325 Exchange difference adjustments 33 (189) Share of results after taxation (636) 1,533 AT END OF YEAR 1,066 1,669 The assets, liabilities and results of the operations of the associate are summarised below: Current assets 23,712 40,990 Non-current assets 1,728 2,748 TOTAL ASSETS 25,440 43,738 Current liabilities 14,660 37,350 Non-current liabilities 8,650 3,050 TOTAL LIABILITIES 23,310 40,400 NET ASSETS 2,130 3,338 Revenue 60,040 60,530 PROFIT / (LOSS) AFTER TAXATION* (1,272) 3,066 TOTAL COMPREHENSIVE PROFIT / (LOSS) AFTER TAXATION (1,272) 3,066 * The Group’s share of profits / (losses) in DMDME and its subsidiaries is loss of $0.64 million (2017: profit of $1.5 million) Consolidated Notes to the Annual Financial Statements (continued) For the year ended 30 June 2018