Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2014
Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2014
47
17. RESERVES
i) Statutory reserve
In accordance with the Companies Law and the Parent Company's Articles of Association, 10% of the profit for the year
attributable to shareholders of the Parent Company (before contributions to KFAS, NLST, board of directors’ remuneration
and Zakat) has been transferred to statutory reserve. The Parent Company may resolve to discontinue such annual transfers
when the reserve totals 50% of the paid up share capital.
Distribution of the reserve is limited to the amount required to enable the payment of a dividend of 5% of paid up share
capital to be made in years when accumulated profits are not sufficient for the payment of a dividend of that amount.
ii) Voluntary reserve
The Parent Company’s Articles of Association require that 10% of the profit for the year attributable to the shareholders of
the Parent Company (before contributions to KFAS, NLST, board of directors’ remuneration and Zakat) has been transferred
to a Voluntary reserve. There are no restrictions on distribution of general reserve. An amount equivalent to the cost of
purchase of treasury shares have been earmarked as non- distributable from voluntary reserve throughout the holding
period of treasury shares.
2014
KD
32,250,000
10,843,301
3,934,500
Number of shares (numbers)
Cost (KD)
Market value (KD)
2013
KD
32,250,000
10,843,301
3,225,000
One of the group’s subsidiaries had pledged shares of the Parent Company, included in treasury shares above against
tawarruq payable amounting to KD 2,614,821 (2013: KD 3,150,000) (Note 20) as detailed below:
Reserves (share premium and voluntary reserve) of the Parent Company equivalent to the cost of treasury shares have been
earmarked as non-distributable.
19. TERM LOANS
2014
68,690,479
9.98
8,380,238
Number of shares
Percentage of issued shares (%)
Market value (KD)
2013
64,802,134
9.98
6,480,213
18. TREASURY SHARES
2014
KD
4,500,000
8,000,000
12,500,000
Current portion
Non-current portion
2013
KD
1,500,000
22,000,000
23,500,000
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The Group is required to repay the term loan in sixteen quarterly instalments between 2012 and 2016 at a similar interest
rate.
Certain assets with carrying value of KD 11,977,922 (31 December 2013: KD 25,926,435) were collateralized against the
term loans (Note 8 and 11).
Shares of a listed subsidiary company with a fair value of KD 7,750,000 (31 December 2013: KD 52,700,000) and
investment in associate with a carrying value of KD 9,181,630 (31 December 2013: KD 9,192,519) were collateralized
against the term loans.
20. TAWARRUQ AND IJARA PAYABLES
Tawarruq agreement with a local Islamic bank amounting to KD 12,000,000 will be repaid over six years of which KD
7,200,000 will be paid over twenty quarterly instalments. The first instalment is due after one year from the date of the
agreement and the final payment of KD 4,800,000 will be paid that the end of the agreement period. The facility has been
granted against a pledge of shares of a listed subsidiary company and investment property.
During the year, one of the Group’s subsidiaries entered into an Ijara contract with an Islamic bank in United Arab
Emirates (UAE) for AED 250,000,000. The Ijara carries annual profit at commercial rates. The Ijara is repayable in quarterly
instalments starting June 2015 and ending June 2024 including a final instalment of AED 95,000,000. The Islamic facility
has been granted against mortgage of investment property (Note 8). The Group will use proceeds of this facility to repay
conventional loans previously obtained from one of the local banks.
Certain assets with carrying value of KD 50,818,140 (31 December 2013: KD 25,926,435) were collateralized against
Tawarruq and Ijara payables (Note 8 and 11).
Certain shares in subsidiary with a fair value of KD 42,510,191 (2013: KD 51,057,000) are pledged against Tawarruq
payable maturing on 31 December 2018. Certain treasury shares are pledged as collateral against tawarrouq payable (Note
18).
2014
KD
32,288,514
19,970,000
52,258,514
Tawarruq payables
Ijara payable
2013
KD
22,897,300
-
22,897,300
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