31 December 2007 - English

3 / 38

AL-WAHA ~
AUDITING OFFICE 6.
ALI OWAID RUKHAEYES ~
Albazie & CO.
Member of RSM International
Member of The International Group of Accounting Firms
Public Accountants
Kuwait Airways Building, 7th Floor
Shuhada Street, P.O. Box 2115 Safat
13022 - State of Kuwait
T + 965 2410010
F + 965 2412761
P.O. Box 27387 Safat
13134 - State of Kuwait
Telephone: (965) 2423415
Facsimile: (965) 2423417
Independent Auditors' report
The Shareholders
AI Mazaya Holding Company K.S.C. (Closed)
State of Kuwait
Report on the consolidated financial statements
We have audited the accompanying consolidated financial statements of AI Mazaya Holding Company K.S.C.
(Closed) (the Parent Company) and subsidiaries (the Group), which comprise the consolidated balance sheet as
at December 31, 2007, and the consolidated statement of income, statement of changes in equity and statement
of cash flows for the year then ended and a summary of significant accounting policies and other explanatory
notes.
We did not audit the financial statements of the subsidiaries, First Dubai for Real Estate Development Company
K.S.C. (Closed) and Mazaya Lebanon Holding - SAL. (Holding) whose total assets and revenues constitute
28.61 % and 14.52% of the respective consolidated totals. The financial statements of First Dubai for Real Estate
Development Company K.S.C. (Closed) and Mazaya Lebanon Holding SAL. (Holding) for the year ended
December 31, 2007 were audited by other auditors, whose reports were provided to us and our opinion in so far
as it relates to the amounts included in the consolidated financial statements related to these subsidiaries is
based solely on the reports of the other auditors.
Management's responsibility for the consolidated financial statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in
accordance with International Financial Reporting Standards. This responsibility includes: designing,
implementing and maintaining internal control relevant to the preparation and fair presentation of the
consolidated financial statements that are free of material misstatement, whether due to fraud or error; selecting
and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor's responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We
conducted our audit in accordance with International Standards on Auditing. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the consolidated financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements.