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
49
22. NET MANAGEMENT FEES AND COMMISSION INCOME
2014
KD
4,013,789
1,606,979
59,974
166,450
3,284,494
9,131,686
Trade payables
Retentions payable
Accrued development costs
Dividends payable
Other payables and accrued expenses
2013
KD
6,121,968
2,337,366
61,444
172,353
3,830,736
12,523,867
2014
KD
658,863
(265,647)
393,216
Management fees and commission income
Cost of management fees and commission
income
2013
KD
739,469
(129,689)
609,780
23. NET INVESTMENT INCOME (LOSS)
24. OTHER INCOME
During the year ended 31 December 2014, other income amounting to KD 1,661,576 mainly represents reversal of
provision on receivables recorded in the prior years relating to acquisition of land in Dubai.
During the year 2008, the Group had entered into a Sale Purchase Agreement (SPA) with third party to acquire a land
in Dubai at a cost of AED 238,022,512 by paying AED 119,011,256 in advance. Due to certain delays in the project
infrastructure, the Group decided not to proceed with the payment of the balance consideration at that time and had taken
a provision against the advances paid towards the acquisition of land.
Subsequent to the above, during the year the Group has entered into a settlement agreement with the third party where it
has been agreed to reschedule the balance consideration amounting to AED 119,011,256 over 3 years through monthly
payments. Accordingly, the Group reassessed the need of the previously recorded provision by comparing the current
market value of the land against the balance consideration on the land, which resulted in a reversal of provision amounting
to KD 1,661,576. The payments made shall be treated as advances towards the acquisition of the land and classified
as advances for purchase of properties. The Group shall reassess any change in the recoverability of the provision on a
continuing basis.
1,675,547
104,381
)126,637(
)61,904(
1,591,387
)41,497(
5,000
)133,828(
)314,316(
)484,641(
Realized gain on disposal of available for sale investments
Dividend income
Portfolio management fees
Impairment loss on financial assets available for sale (note 11)
2013
KD
2014
KD
21. ACCOUNTS PAYABLE AND OTHER LIABILITIES
76
1,553,059
-
-
-
208,791
14,656,980
1,761,850
14,656,980
717,282
-
Consolidated statement of income:
Revenue from sale of properties held for trading
Net management fees and commission income
-
-
4,668,299
403,513
Consolidated statement of income:
Amounts due from related
parties (Note 14) (Note i and ii)
Advances for purchase of
properties (Note 12)
Major
shareholders
KD
Other related
parties
KD
Joint venture
and associates
KD
Total 2014
KD
Total 2013
KD
2014
KD
2013
KD
25. RELATED PARTY TRANSACTIONS
These represent transactions with related parties, i.e. Subsidiaries, shareholders, directors and key management personnel
of the Group, and entities controlled, jointly controlled or significantly influenced by such parties. Pricing policies and
terms of these transactions are approved by the Group’s management.
Transactions with related parties included in the consolidated financial statement are as follows:
i) Amounts due from related parties are interest free and receivable on demand.
ii) Amount receivable from major shareholder includes KD 925,704 (2013: Nil) towards sale of 10% equity interest in a
subsidiary (Note 9).
Compensation for board members and other key management members for the year are as follows:
2014
KD
698,191
46,661
744,852
Salaries and other short term benefits
Terminal benefits
2013
KD
750,070
32,313
782,383
77
