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AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2023
(All amounts are in Kuwaiti Dinar)

Transactions included in the consolidated statement of profit or loss:

For the three months ended For the six months ended
Key June 30, June 30,
management 2023 2023
personnel (Audited) 2022 (Audited) 2022
Rental income 4,308 2,154 2,154 4,308 4,308
Amortization of finance costs
related to lease liabilities (164,898) (81,800) (42,171) (164,898) (85,468)

(a) During the period ended June 30, 2023, a property leased by the Group which is accounted for under IFRS 16
has been acquired by a board member from its previous owner. Based on that, the Group’s lease liability towards
that property had been reassigned towards the new owner under the same terms and conditions of the original
contractual lease terms with the old owner for the remaining lease term which ends on October 2037.

The amounts recognized for this lease liability mentioned above that compose part of the Groups’ consolidated lease
liabilities can be presented as follows:

June 30, December 31,
2023 2022 June 30,
(Audited) (Audited) 2022
Lease liability within one year 909,000 585,000 540,000
Remaining liability till end of lease term 7,731,000 3,213,000 3,483,000
Total lease liability 8,640,000 3,798,000 4,023,000
Less: Unamortized future finance charge (1,965,053) (553,762) (634,673)
Present value of minimum lease payments 6,674,947 3,244,238 3,388,327

Key Management personnel
For the three months ended For the six months ended
June 30, June 30,
2023 2023
(Audited) 2022 (Audited) 2022
Short term benefits 126,089 144,341 252,179 287,395
End of service indemnity 11,832 15,293 23,664 30,450
137,921 159,634 275,843 317,845

24. General Assembly of the Parent Company’s Shareholders
The Parent Company’s Shareholders’ Extraordinary General Assembly meeting, held on June 13, 2023, had approved
the amendment of Article (57) of the Memorandum of Incorporation, and added a new Article (61) to the Memorandum
of Incorporation of the Parent Company regarding the mechanism of distributing interim dividends to shareholders,
which was notarized in the commercial registry on June 25, 2023 (Note 1).

The Shareholders’ General Assembly of the Parent Company, held on August 3, 2023, had approved distributing
dividends as free bonus shares from the treasury shares at the rate of 2% to be distributed among the Shareholders
registered in the Parent Company’s shares’ registry as of the entitlement date, each according to his ownership
interest.

These distributions’ impact will be recorded as a reduction from the retained earnings and statutory reserves by an
amount of KD 194,816 and KD 305,336 respectively without any increase in either the Company’s share capital or its
issued shares on the entitlement date of such distributions.

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