85 / 88
GB Auto and its subsidiaries (S.A.E.)
Notes to the consolidated financial statements For the financial Year ended December 31, 2014
(In the notes all amounts are shown in Thousand Egyptian Pounds unless otherwise stated)
36.Contingent assets and liabilities
Contingent assets
The Group raised a legal claim against Egyptian Development Bank (EDB) with an amount of EGP 76 million which represents
the value of the notes receivable of the Group customers deposited in the bank for collection. The bank did not perform due
care in collection of these notes receivable nor took a legal action against the customers which led to the expiry of these notes
and a foregoing of the Group’s right in collecting them or taking the required legal action. Based on the advice of legal council
of the Group, the Group management believes that judgment in this case will be in its favor.
Contingent Liabilities
There are contingent liabilities on the Group presented in letters of guarantee. The balance of the letters of grantee granted by
the Group in Egyptian Pounds and foreign currencies through its regular business, presented in EGP as follows:
December
31, 2014
December
31, 2013
USD
251 020
547 830
EGP
115 925
59 625
Japanese Yen
230
3 096
Sweden Krona
-
15 647
Euro
59 355
1 542
37.Capital commitments
The capital contractual expenditure of the Group at the consolidated financial statements date reached EGP 104 217 (EGP 73
943 as at December 31, 2013) represented in the amount to be paid upon the completion of the new production lines under
construction and other branches across the country.
38. Adjustments on beginning balances
The company has applied the Accounting Standard of Employee Stock Option Plan in accordance with Egyptian Accounting
Standard no. 39, which has been approved by the Extra Ordinary General Assembly Meeting. As a result, the following adjust-
ments have been made:-
Due from
related
parties
L.E
Creditors
and other
credit
balances
L.E
Payments
under
capital
increase
L.E
Other
reserves
L.E
Retained
earnings
L.E
Balances as it is presented at
January 1, 2014
2 500
1 373 363
2 258
1 089 499
393 424
Adjustments on beginning
balances
899
(1 613)
2 256
26 766
(26 510)
Restated Balance after
adjustments as at January 1, 2014
3 399
1 371 750
4 514
1 116 265
482 915
Ghabbour Auto | 2014 ANNUAL REPORT
83