Page 11 - Mazaya Holding_FS_E_Q3_2021

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

3. Cash and cash equivalent
December 31,
September 30, 2020 September 30,
2021 (Audited) 2020
Cash in hand and at banks 4,983,917 5,078,529 3,712,112
Short term bank deposit (a) 1,000,000 2,000,000 9,000,000
5,983,917 7,078,529 12,712,112
Less: Restricted bank balances (b) (601,364) (688,792) (523,945)
Cash and cash equivalent in consolidation statement of
cash flow 5,382,553 6,389,737 12,188,167

a) The average effective annual return on short term bank deposits is 0.91% (December 31, 2020 – 0.875%,
September 30, 2020 – from 1% to 1.125%) 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 collateral for some bank facilities of the Group, which may not be available for use
within 90 days.

4. Accounts receivable and other debit balance
December 31,
September 30, 2020 September 30,
2021 (Audited) 2020
Trade receivables 7,313,616 11,077,074 12,000,118
Advance payments and other receivables 11,855,354 12,026,045 12,436,415
19,168,970 23,103,119 24,436,533
Allowance for expected credit losses (11,316,383) (12,255,245) (12,692,018)
7,852,587 10,847,874 11,744,515

5. Assets classified as held for sale
On September 23, 2021, the Board of Directors of a subsidiary to the Group approved the disposal of all the shares of
its subsidiary in the Kingdom of Saudi Arabia (Kuwaiti Saudi Real Estate Investment Company – O.P.C.) aginst cash
and in-kind consideration with a net amount of 15,500,000 Kuwaiti dinars .The assets and liabilities attributable to the
subsidiary, which are expected to be sold within twelve months, have been classified as a disposal group held for sale
and are presented separately in the statement of financial position.

The major items of assets and liabilities comprising the subsidiary under disposal which are classified as held for sale
are as follows :

September 30,
2021
Assets :
Cash on hand and at banks 190,720
Accounts receivable and other debit balances 78,759
Investment properties 15,147,366
Total Assets classified as held for sale 15,416,845

Liabilities :
Accounts payable and other credit balances 278,201
Provision for end of service indemnity 2,602
Total liabilities associated with assets classified as held for sale 280,803
Net assets classified as held for sale 15,136,042

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