Page 11 - Q1-2023-EN

AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
MARCH 31, 2023
(All amounts are in Kuwaiti Dinars)

3. Cash and cash equivalent
December 31,
March 31, 2022 March 31,
2023 (Audited) 2022
Cash in hand and at banks 5,949,393 6,282,329 5,092,825
Cash in portfolios 574 75,551 -
5,949,967 6,357,880 5,092,825
Less: Restricted bank balances (a) (429,769) (582,912) (657,630)
Cash and cash equivelant in consolidation statement of
cash flow 5,520,198 5,774,968 4,435,195

a) Restricted bank balances represent escrow accounts restricted for receiving and making payments for specific
construction activities and as a collateral for same bank facilities of the Group, which may not be available for use
within 90 days.

4. Assets classified as held for sale
Net assets and liabilities classified as held for sale are represented as follows:

December 31,
March 31, 2022 March 31,
2023 (Audited) 2022
Kuwaiti Saudi Real Estate Investment Company –
O.P.C. (a) 15,035,898 14,906,477 15,223,607
Mazaya Ritim Istanbul Insaat Anonim Sirketi (Ritim)
Company (b) 4,843,526 - -
19,879,424 14,906,477 15,223,607

a) Kuwaiti Saudi Real Estate Investment Company – O.P.C.
During the year ended December 31, 2021, the Board of Directors of a subsidiary to the Group (First Dubai Real
Estate Development Company K.S.C. (public)) approved the disposal of all the shares of Kuwaiti Saudi Real Estate
Investment Company – O.P.C. (subsidiary to First Dubai Real Estate Development Company K.S.C. (public))
(subsidiary)) against cash and in kind consideration with a net amount of 15,500,000 Kuwaiti dinars .The assets
and liabilities attributable to the subsidiary have been classified as a disposal group held for sale and are presented
separately in the statement of financial position.

During the year ended December 31, 2022, that transaction was partially executed by transferring part of the in-
kind consideration to First Dubai Real Estate Development Company - K.S.C. (Public) (subsidiary) by transferring
investment properties amounting to KD 10,125,000 along with an attached mortgage in favor of a local bank for an
amount of KD 6,000,000 which was included within the Islamic bank facilities of the Group in addition to partial
payment of the cash consideration in the amount of KD 450,000 that had resulted in an obligation of KD 4,575,000
which was recorded under the Accounts payable and other credit balances till the completion of the remaining
transaction terms by both parties and recording the full financial impact in the consolidated financial statements at
that time.

During the period ended March 31, 2023, the two parties agreed to amend some transaction terms, which are
mainly represented in the exclusion of one of the properties owned by the subsidiary under sale out of the deal
and not to include that property in the assets attributable to that subsidiary under sale when transferring the
ownership of its shares to the buyer upon the completion of the transaction in the future. In addition to amending
the execution mechanism of the remaining terms of the transaction between the two parties and amending the
execution phases to be in two phases, where the first phase shall be executed upon the transfer of the remaining
properties to be transferred by the buyer to First Dubai Real Estate Development Company - K.S.C. (Public) (the
subsidiary), and the second phase shall be fully executed upon the buyer’s payment of KD 3,550,000 to the
subsidiary. Accordingly, the remaining terms of that transaction are currently under execution by both parties in
addition to studying several other options for the final settlement of that transaction between the two parties.

8