Page 42 - Q4-2024-EN

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC)
AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2023
(All amounts are in Kuwaiti Dinars)

Subsequent to the date of the accompanying consolidated financial statements, the parties have completed and
executed all other procedures related to the termination and settlement agreement, which resulted in the
derecognition of the remaining liabilities, properties and other balances related to that transaction and hence, the
Subsidiary recognized a gain of KD 1,125,000 as follows:

Amount
Derecognition of the subsidiary’s remaining liabilties towards the buyer 3,825,000
Derecognition of Islamic bank facilities incurred by the buyer 4,000,000
Amounts due to be collected from the buyer within one year 150,000
Book value of other properties re-transferred back to the buyer (6,850,000)
Gain from the transaction’s termination and settlement 1,125,000

The assets and liabilities of the consolidated subsidiary that had been reclassified are summarized as follows:

2023
Assets:
Cash on hand and at banks 749,383
Accounts receivable and other debit balances 52,884
Investment properties 14,714,944
Total assets 15,517,211

Liabilities:
Accounts payable and other credit balances 293,471
Provision for end of services indemnity 1,485
Total liabilities 294,956
Net assets 15,222,255

The assets and liabilities comprising the disposal group classified as held for sale in the comparative year are
summarized as follows:

2022
Assets:
Cash on hand and at banks 199,294
Accounts receivable and other debit balances 74,207
Investment properties 14,881,261
Total assets classified as held for sale 15,154,762

Liabilities:
Accounts payable and other credit balances 246,159
Provision for end of services indemnity 2,126
Total liabilities relating to assets classified as held for sale 248,285
Net assets classified as held for sale 14,906,477

Certain investment properties with a carrying value amounting to KD Nil (2022 - KD 5,297,272) are pledged as
collateral against Islamic bank facilities (Note 13).

The group has complied with the executive regulations of the Capital Markets Authority regarding investment
property valuation guidelines. The fair value of the investment properties was arrived at by independent valuators
unrelated to the group and certified with experience and professionalism using recognized valuation principles and
methods. For the purposes of estimating the fair value of the investment properties, the valuers have used the
income capitalization as the basis for valuing these properties that are used as commercial premises and fall under
Level 3 fair value measurements.

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