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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.
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