McConnell Dowell 2019 Annual Review

70 McConnell Dowell Group Consolidated All figures are in A$ 000’s 2019 2018 11. Investments in and loans to associates and others (a) Investment details Unlisted Investment in Dutco McConnell Dowell Middle East LLC - 1,066 Loan to Dutco McConnell Dowell Middle East LLC - 1,842 Net investment in and loans to associates and others - 2,908 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. (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 $3.8 million (2018: $3.9 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 company is scaling back its’ operation in the Middle East. Financial Statements 2019 Notes to the annual financial statements (continued) for the year ended 30 June 2019