Page 13 - 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)

7. Related party disclosures
The Group has entered into various transactions with related parties, i.e. key management personnel and other related
parties. Prices and terms of payment are to be approved by the Group's management. Significant related party
transactions and balances are as follows:

Interim condensed consolidated statement of financial position:

Key December 31,
management June 30, 2020 June 30,
personnel 2020 (Audited) 2020
Accounts receivable and other debit balances 1,845 1,845 140,371 1,929
Accounts payable and other credit balances 174,406 174,406 90,000 21,622
Lease liabilities (a) 3,752,943 3,752,943 3,973,687 4,100,196

Amounts due from / to related parties are interest free and are receivable or payable on demand.

Certain key management personnel and their reltaives have 50% ownership interest in Med Cell medical company
K.S.C.C (a subsidiary to the Group) – Note 10

Transactions included in the interim condensed consolidated statement of profit or loss:

For the six months ended
Key June 30,
management
personnel 2021 2020
Rental income 1,436 1,436 -
Amortization of finance costs related to lease liabilities (94,256) (94,256) (102,260)

a) The amounts recognized for this lease liability montioned above as at June 30, 2021 that compose part of the Groups’
consolidated lease liabilities can be presented as follows:

June 30, June 30,
2021 2020
Lease liability within one year 540,000 540,000
Remaining liability till end of lease term 4,023,000 4,563,000
Total lease liability 4,563,000 5,103,000
Less: Unamortized future finance charge (810,057) (1,002,804)
Present value of minimum lease payments 3,752,943 4,100,196

Compensation to key management personnel:
For the three months ended For the six months ended
June 30, June 30,
2021 2020 2021 2020
Short term benefits 137,454 155,898 275,858 311,798
Terminal benefits 14,621 16,251 29,325 32,502
152,075 172,149 305,183 344,300

During the period ended June 30, 2021, the Parent Company has recognized an expense amounting to KD Nil (June 30,
2020 - KD 11,304) relating to equity-settled share-based payment transactions to its employees. During the period ended
June 30, 2021, some employees exercised their share options with 606,844 shares, and these shares were issued from
treasury shares held with the Group aginst setting off the full balance of employees’ share option plan reserve and part of
statutory reserve in accordance with Capital Market Authority guidelines.

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