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AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
MARCH 31, 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 6,873,627) 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 1,944,198) 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. Subsequent to the
accompanying consolidated interim financial information date, the subsidiary amended its claim in that lawsuit by an
additional claim amounting to AED 40,000,000 (equivalent to KD 3,353,720) 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 right to refer to 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, and some of those lawsuits which were filed by the owners of those
units have been ruled for in favor of the subsidiary company by the Court of First Instance and those lawsuits are still
currently under hearing in front of the legal courts. Accordingly, no provisions were booked in respect of these claims
as at the date of the accompanying consolidated interim financial information.

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. Upon executing that transaction, the related impact will be recorded by reducing the retained earnings by
KD 878,482 without any increase in the Parent Company’s capital or any increase in the number of issued shares on
the record date of those dividends.

The Parent Company’s Shareholders’ Annual General Assemly, 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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