Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2013
47
16. RESERVES
i) Statutory reserve
In accordance with the Companies Law and the Parent Company's Articles of Association, 10% of the profit for the year
attributable to shareholders of the Parent Company (before contributions to KFAS, NLST, board of directors’ remuneration
and Zakat) has been transferred to statutory reserve. The Parent Company may resolve to discontinue such annual transfers
when the reserve totals 50% of the paid up share capital.
Distribution of the reserve is limited to the amount required to enable the payment of a dividend of 5% of paid up share
capital to be made in years when accumulated profits are not sufficient for the payment of a dividend of that amount.
ii) Voluntary reserve
The Parent Company’s Articles of Association require that 10% of the profit for the year attributable to the shareholders of
the Parent Company (before contributions to KFAS, NLST, board of directors’ remuneration and Zakat) has been transferred
to a Voluntary reserve. There are no restrictions on distribution of general reserve.
2013
KD
32,250,000
10,843,301
3,225,000
Number of shares (numbers)
Cost (KD)
Market value (KD)
2012
KD
32,250,000
10,843,301
2,354,250
During the year, a subsidiary company had pledged shares of the Parent Company, included in treasury shares above
against tawarruq payable amounting to KD 3,150,000 (2012: KD 3,500,000) as detailed below:
Reserves (share premium and statutory reserve) of the Parent Company equivalent to the cost of treasury shares have been
earmarked as non-distributable.
18. TERM LOANS
2012
64,802,134
9.98
6,480,213
Number of shares
Percentage of issued shares (%)
Market value (KD)
2011
64,802,134
9.98
4,730,556
17. TREASURY SHARES
2013
KD
1,500,000
22,000,000
23,500,000
Current portion
Non-current portion
2012
KD
7,000,000
31,000,000
38,000,000
66
