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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)

A subsidiary to the Parent Company in the Emirate of Dubai had filed a lawsuit (as a precautionary measure in order to
avoid the statute of limitation related to the date of filing that lawsuit) against several parties demanding them to be bear
the costs of rectifying the defects and repairing some buildings in the Emirate of Dubai that they had previously
developed for the benefit of the subsidiary during the period from 2007 to 2015, due to their responsibility for the
implementation work and supervising the implementation of those buildings for the benefit of the subsidiary as some
defects that require repairs had appeared according to the reports of relevant authorities in the Emirate of Dubai, where
the Company demands to oblige the defendants with a total amount of AED 82,022,600 (equivalent to KD 6,862,708)
in addition to the legal interest of 5% from the date of the judicial claim till full settlement date, in addition to demanding
that some of the other defendants be obligated to an amount of AED 23,200,000 in solidarity with the first defendant
parties (equivalent to the amount of KD 1,941,109) in addition to the legal interest of 5% from the date of the judicial
claim till full settlement date, which represents the estimated budget of the repair costs for the subject buildings that
resulted from implementation defects by the main contractor and subcontractors in addition to reserving the right to
request compensation after assessing the damages and losses as well as obliging the defendants to pay the related
fees, expenses, and attorney’s fees. This case was referred to the Department of Experts, as it is still currently under
hearing in front of the legal courts as of the accompanying interim consolidated financial information date.

12. General Assembly of the Parent Company’s Shareholders
The Annual General Meeting of the Shareholders held on March 16, 2023, has approved the consolidated financial
statements of the Group for the year ended December 31, 2022 and approved the following items:
• Not to distribute cash dividends or bonus shares for the year ended December 31, 2022.
• Not to pay Board of Directors remuneration for the year ended December 31, 2022.
• To offset the entire accumulated loss balance amounted to KD 9,095,362 as at December 31, 2022 against reducing
the balance of the share premium from KD 17,921,560 to KD 8,826,198.

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.

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. During the period
ended September 30, 2023, the effect of this distribution was recorded by reducing the Statutory reserve by an amount of
KD 508,405 based on the approval of the Capital Markets Authority, without any increase in either the Company’s share
capital or its issued shares on the entitlement date of such distributions.

Subsequent to the date of the accompanying interim consolidated financial information, The Parent Company’s
Shareholders’ Ordinary and Extraordinary General Assembly meeting, held on October 5, 2023, approved the reduction of
the Parent Company’s authorized, issued and paid up capital from KD 62,955,982 to KD 48,474,817, with total reduction
of KD 14,481,165, to set-off the full balance of the accumulated losses amounting to KD 24,245,118 as per the audited
consolidated financial statements for the period ended June 30, 2023, as follows:
• Reducing the balance of statutory reserve by KD 937,755.
• Reducing the full balance of share premium by KD 8,826,198.
• Reducing the share capital by KD 14,481,165 through cancelling 144,811,650 shares with a par value of 100 fils
per share to set-off the remaining portion of the accumulated losses balance.

Subsequent to the date of the accompanying interim consolidated financial information, those amendments were notarized
in the commercial registry on October 16, 2023 and their effect was recorded in the group’s consolidated financial
statements at that date.

The Annual General Meeting of the Shareholders held on March 17, 2022, has approved the consolidated financial
statements of the Group for the year ended December 31, 2021, and not to distribute cash dividends or bonus shares
and not to pay Board of Directors remuneration for the year ended December 31, 2021.

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