Page 23 - Q3 2024 EN
P. 23

AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
            NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
            SEPTEMBER 30, 2024
            (All amounts are in Kuwaiti Dinars)

               A subsidiary to the Parent Company in the Emirate of Dubai had filed a lawsuit (as a precautionary measure in order
               to avoid the statute of limitation related to the date of filing that lawsuit) against several parties demanding them to
               bear the costs of rectifying the defects and repairing some buildings in the Emirate of Dubai that they had previously
               developed for the benefit of the subsidiary during the period from 2007 to 2015, due to their responsibility for the
               development work and supervising the developments of those buildings for the benefit of the subsidiary as some
               defects  that  require  repairs,  where  the  Company  demands  to  oblige  the  defendants  with  a  total  amount  of
               AED 82,022,600 (equivalent to KD 6,856,757) in addition to the legal interest of 5% from the date of the judicial claim
               till full settlement date, in addition to demanding that some of the other defendants be obligated to an amount of
               AED 23,200,000 in solidarity with the first defendant parties (equivalent to the amount of KD 1,939,426) in addition to
               the legal interest of 5% from the date of the judicial claim till full settlement date, which represents the estimated budget
               of  the  repair costs  for  the  subject buildings that  resulted from  development defects by  the  main contractor and
               subcontractors in addition to reserving the right to request compensation after assessing the damages and losses as
               well as obliging the defendants to pay the related fees, expenses, and attorney’s fees. During the period ended
               September 30, 2024, the subsidiary amended its claim in that lawsuit by an additional claim amounting to AED
               40,000,000 (equivalent to KD 3,326,940) as monetary and punitive compensation, this lawsuit is still pending in court
               as at the date of the accompanying consolidated interim financial information. In the same regard, there are some
               lawsuits filed against that subsidiary by some unit owners in those buildings that are being repaired to claim the
               termination of their unit contracts and compensation for damages, the independent legal advisor of the company
               believes that the subsidiary has the recourse right against the developing parties of these buildings with all these
               damages  and  compensations  once  ruled  for  by  the  court  against  the  company,  which  is  the  subject  of  the
               aforementioned lawsuit filed by the subsidiary, as those lawsuits are still currently under hearing in front of the legal
               courts. Accordingly, no additional provisions were booked in respect of these claims as at the date of the accompanying
               consolidated interim financial information.

               A subsidiary to the Group in Sultanate of Oman had filed a Criminal Complaint against some of its employees because
               of fraudulent activities amounting to OMR 242,604 (equivalent to KD 192,508) related to collection of sales and rental
               proceeds  for  some  units.  The  Public  Prosecutor  in  Sultanate  of  Oman  had  appointed  an  independent  certified
               accounting expert to inspect that complaint filed by the subsidiary to determine the final amounts that were seized up
               by those employees in order to complete the related legal procedures. There is no financial impact on that subsidiary
               due to the existence of enough provisions previously recognized in the subsidiary’s records against the uncollected
               amounts as of the accompanied interim consolidated financial information date.

            15.  Parent Company’s Annual General Assembly and Board of Directors approvals
               Based  on  the  Parent  Company’s  Ordinary  General  Assembly  resolution  on  March  26,  2024  that  approved  and
               authorized the Board of Directors to distribute interim dividends (semi-annually or quarterly) and to determine the
               distribution rate of those interim dividends to the shareholders, the Parent Company’s Board of Directors, held on May
               9, 2024 had decided to distribute interim dividends as free bonus shares from treasury shares at the rate of 2.5% to
               the shareholders registered in the Parent Company’s registry as at the record date according to their ownership
               interest. The related impact of those dividends has been recognized by reducing the retained earnings by KD 884,427
               without increasing the Parent Company’s capital or the number of issued shares on the record date of those dividends.

               The Parent Company’s Shareholders’ Annual General Assembly, held on March 26, 2024, had approved the consolidated
               financial statements of the Group for the year ended December 31, 2023 as well as the following:
               •  Not to distribute cash dividends or bonus shares for the year ended December 31, 2023.
               •  To authorize the Board of Directors to distribute interim dividends (quarterly or semi-annually) to the Shareholders of
                  the Parent Company starting from the first interim financial statements of the Group following the completion of the
                  merger with First Dubai Real Estate Development Company, and to authorize the Board of Directors to determine the
                  dividends distribution rate, provided that such distribution must be from real profits in accordance with applicable
                  accounting principles and without impacting the Company’s paid-up capital.
               •  Not to pay Board of Directors remuneration for the year ended December 31, 2023.





                                                            19
   18   19   20   21   22   23   24   25   26