Page 11 - Mazaya Holding_FS_E_Q2_2021

AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
JUNE 30, 2021
(All amounts are in Kuwaiti Dinars)

3. Cash and cash equivalent
December 31,
June 30, 2020 June 30,
2021 (Audited) 2020
Cash in hand and at banks 5,843,883 5,078,529 7,662,699
Short term bank deposit (a) 1,000,000 2,000,000 9,500,000
6,843,883 7,078,529 17,162,699
Less: Restricted bank balances (b) (668,265) (688,792) (2,934,302)
Cash and cash equivelant in consolidation statement of
cash flow 6,175,618 6,389,737 14,228,397

a) The effective interest rate on short term bank deposit is 0.91% (December 31, 2020 - 2.94% and June 30, 2020 –
1.8%) per annum. This deposit has contractual maturity of 30 days.

b) Restricted bank balances represent escrow accounts restricted for receiving and making payments for specific
construction activities and as a collateral for same bank facilities of the Group, which may not be available for use
within 90 days.

4. Treasury shares
December 31,
June 30, 2020 June 30,
2021 (Audited) 2020
Number of shares 58,724,740 59,331,584 60,811,242
Percentage of issued shares (%) 8.53 8.62 8.84
Market value (KD) 6,459,721 3,370,034 3,156,103
Cost (KD) 18,626,865 18,819,349 19,288,845

The Parent Company’s management has allotted an amount equal to treasury shares balance from share premium and
part of statutory reserve as of June 30, 2021. Such amount will not be available for distribution during treasury shares
holding period.

Subsequent to the date of the interim condensed consolidated statement of financial position, the Group has cancelled
number of 58,719,140 shares from treasury shares balance by reducing the capital and the statutory reserve (Note 9).

5. Net other (expenses) income
The comparative financial period for the six months ended on June 30,2020 include amounts related to a lawsuit was
filed by two subsidiaries of the Group before the courts of Dubai in United Arab Emirates (UAE) against some investors
for developing real estate projects in Dubai, UAE where the Group’s has recorded an amount of AED 7,352,377
(equivalent to KD 612,026) as an income during the comparative period for extended services to the investors. The
Group had recognized a provision during the period amounting to AED 14,793,394 (equivalent to KD 1,231,430) in
order to complete the recognition of full provision for all the balances reported in its records pertaining to that claim for
conservatism purposes and not in surrender to the Group’s rights in those balances reported in it`s records.
Subsequent, the first-degree court had ruled in favor of the two subsidiaries for their entitlement of a total amount of
AED 19,780,852 (equivalent to KD 1,625,687) in addition to the legal interest of 9% from the date of legal claim till full
settlement date for which, the Group had appealed against it in front of Court of Appeal. During the period ended on
June 30,2021, the Court of Appeal ruled by confirming first-degree court’s verdict, and the Group is currently in process
of filing an appeal in front of the Court of Cassation.

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