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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)

12. Lease liabilities
The movement of the lease liabilities during the year are as follows:

2023 2022
Balance at the beginning of the year 26,740,311 11,902,888
Additions (Note 9) 5,437,161 15,782,567
Amortization of finance costs related to lease liabilities 1,483,647 994,974
Payments (2,712,580) (1,940,118)
Balance at the end of the year 30,948,539 26,740,311

Lease liabilities can be presented as follows:

Minimum lease Present value of minimum
payments lease payments
2023 2022 2023 2022
Leases liabilities:
Within one year 3,702,211 2,815,413 2,117,740 1,512,273
Remaining liability till end of lease term 37,870,997 32,259,769 28,830,799 25,228,038
Total lease liabilities 41,573,208 35,075,182 30,948,539 26,740,311
Less: Unamortized future finance charge (10,624,669) (8,334,871) - -
Present value of minimum lease payments 30,948,539 26,740,311 30,948,539 26,740,311

The average lease term is from 10 to 15 years (2022 – from 10 to 15 years) and the average effective borrowing rate
is from 5% to 6.75% for the year ended December 31, 2023 (2022 – from 5% to 5.5%). All leases are on a fixed
repayment basis and no arrangements have been entered into for additional contingent rental payments.

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