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AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
SEPTEMBER 30, 2023
(All amounts are in Kuwaiti Dinars)

The results of operation related to the subsidiary under disposal which are classified as held for sale are as follows:

For the three months ended For the nine months ended
September 30, September 30,
2023 2022 2023 2022
Revenue:
Rental income 192,480 189,830 564,728 560,331
Net management fees and commission income 10,369 10,584 31,560 30,495
Total revenue 202,849 200,414 596,288 590,826

Costs:
Cost of rental (83,810) (28,641) (163,627) (139,485)
Total costs (83,810) (28,641) (163,627) (139,485)

Gross profit 119,039 171,773 432,661 451,341

Change in fair value of investment properties - - (350,797) -
General and administrative expenses (16,298) (408) (21,099) (18,755)
Operating profit 102,741 171,365 60,765 432,586
Net other income (expenses) 12,169 229 101,408 (1,895)
Profit for the period from discontinued operations 114,910 171,594 162,173 430,691
Other comprehensive income for the period from
discontinued operations 100,162 171,828 188,849 438,929
Total other comprehensive income for the period from
discontinued operations 215,072 343,422 351,022 869,620

b) Discontinued operations
During the period ended September 30, 2023, the Parent Company received an offer to purchase its full ownership
interest in its subsidiary in Turkey “Mazaya Ritim Istanbul Insaat Anonim Sirketi” for Turkish Lira 310 Million,
equivalent to almost KD 4.89 Million as at April 13, 2023, (date of disposal) including the settlement of current
accounts between the Parent Company and disposed subsidiary. The Parent Company accepted that offer and
sold all ownership interests in that subsidiary in Republic of Turkey against the same consideration provided in the
purchase offer.

This transaction was recorded by the Group during the period ended September 30, 2023 based on the
subsidiary’s financial position as at April 13, 2023 (date of sale transaction completion).

The accumulated losses include a credit amount of KD 579,638 that represents the calculation of the cumulative
hyperinflation impact resulting from historical translation differences for the activities and operations of the
subsidiary from the beginning of the year the sale transaction completion date in accordance with IAS 29 “Financial
Reporting in Hyperinflationary Economies”. The net monetary gain for the Group that was recognized in the
consolidated statement of profit or loss till the sale transaction completion date had amounted to KD 75,048, which
had resulted from the assessment of the Turkish economy as a hyperinflationary economy based on the cumulative
inflation rates over the previous three years that was effective for reporting periods on or after April 1, 2022, where
the Group had decided to classify the historical translation differences associated with the hyperinflation to
accumulated losses.

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