AnnualReport

ANNUAL REPORT

2016

otes To The Consolidated Financial Statements

AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES

As At 31 December 2016

1. CORPORATE INFORMATION

Al Mazaya Holding Company - K.S.C.P. (the “Parent Company”) was incorporated on 7 November 1998.

These consolidated financial statements presents the results of the Parent Company and its subsidiaries

(collectively referred to as the “Group”). The registered head office of the Parent Company is at Mazaya Tower

01, Al Murqab, P.O. Box 3546, Safat 13036, State of Kuwait.

The principal activities of the Parent Company as per the memorandum of incorporation are as follows:

Ownership of Kuwaiti and foreign shareholding companies, ownership of shares and portions of limited

liability Kuwaiti and foreign companies or participating in the formation of those companies, as well as

managing and guaranteeing those companies, granting loans to the companies in which it owns shares in and

guaranteeing them towards others, provided that the percentage of participation of the holding company in

the capital of the borrowing company is not less than 20%, ownership of industrial property rights including

intellectual rights, trade marks, industrial marks, industrial fees or any other rights relating to such assets and

leasing them to other companies to utilize them whether inside or outside the state of Kuwait, ownership of

the movable assets and real properties needed to operate within the applicable laws, utilization of its available

financial surpluses by investing them in financial real estate portfolios managed by specialized companies.

The Parent Company has the right to practice its aforementioned objectives inside the State of Kuwait and

abroad for itself or as agent or representative to other, the Parent Company has the right as well to have interest

or to participate with entities that practice similar operations or assist the Parent Company in achieving its

objectives inside and outside Kuwait, and such it has the right to establish, form partnership, purchase or

merge with those entities.

The consolidated financial statements of the Group for the year ended 31 December 2016 were authorised

for issue by the Board of Directors on 5 February 2017, and are issued subject to the approval of the Ordinary

General Assembly of the shareholders of the Parent Company. The shareholders’ General Assembly has the

power to amend the consolidated financial statements after issuance.

The new Companies Law No. 1 of 2016 was issued on 24 January 2016 and was published in the Official

Gazette on 1 February 2016 which cancelled the Companies Law No. 25 of 2012, and its amendments.

According to article No. 5, the new Law will be effective retrospectively from 26 of November 2012. The new

Executive Regulations of Law No. 1 of 2016 was issued on 12 July 2016 and was published in the Official

Gazette on 17 July 2016 which cancelled the Executive Regulations of Law No. 25 of 2012.

2. BASIS OF PREPERATION

The consolidated financial statements of the Group have been prepared on the historical cost basis, except for

financial assets available-for-sale, and investment properties that have been measured at fair value.

The consolidated financial statements are presented in Kuwaiti Dinars (“KD”), which is the functional currency

of the Parent Company.

The consolidated financial statements have been prepared in accordance with International Financial

Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).