Mazaya_FS_E Q4. 20

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2020 (All amounts are in Kuwaiti Dinars) 40 Islamic bank facilities are secured by pledging the following in favor of the lending banks: 2020 2019 Restricted bank balances (Note 3) 504,907 2,838,139 Investment in shares owned by the parent Company in one of group’s subsidiaries 35,511,487 29,932,376 Properties held for trading (Note 6) 4,532,434 5,026,033 Financial assets at FVTOCI (Note 7) 11,139,946 3,115,718 Investment in an associate (Note 8) - 9,859,742 Investment properties (Note 9) 113,514,936 114,947,635 165,203,710 165,719,643 14. Term Loans During the year ended December 31, 2020, the Group made full early settlement for the outstanding balance of the term loan from foreign bank that was originally maturing in February 2021. The guarantees provided for term loans as at December 31,2019 as follows: - Pledge of properties held for trading amounting to KD 2,576,648 (Note 6). - Pledge of investment properties with fair value amounting to KD 9,600,087 (Note 9). 15. Share Capital The authorized, issued and paid up capital consist of 688,278,956 shares (2019 – 688,278,956 shares) with a nominal value of 100 fils each and all shares are in cash. 16. Treasury shares 2020 2019 Number of shares (share) 59,331,584 60,811,741 Percentage of issued shares (%) 8.62 8.84 Market value (KD) 3,370,034 3,575,730 Cost (KD) 18,819,349 19,288,845 The Group’s management has allotted an amount equal to treasury shares balance from share premium liabilities at the date of the consolidated financial statements. Such amount will not be available for distribution during treasury shares holding period. 17. Statutory reserve As required by the Companies Law and the Parent Company's Articles of Association, 10% of the profit for the year attributable to the Parent Company’s shareholders before contribution to Kuwait Foundation for the Advancement of Sciences (KFAS), NLST, Zakat and Board of Directors’ remuneration is transferred to the statutory reserve. The Parent Company may resolve to discontinue such annual transfers when the reserve exceeds 50% of the capital. This reserve is not available for distribution except in cases stipulated by Law and the Parent Company's Articles of Association. Since there is a loss for the year, there were no transfer to statutory reserve for the year ended December 31, 2020. 18. Voluntary reserve As required by the Parent Company’s Articles of Association, 10% of the profit for the year attributable to the Parent Company’s shareholders before contribution to Kuwait Foundation for the Advancement of Sciences (KFAS), NLST, Zakat and Board of Directors’ remuneration is transferred to the voluntary reserve. Such annual transfers may be discontinued by a resolution of the Shareholders’ Annual General Assembly of the Parent Company upon recommendation by the Board of Directors. Since there is a loss for the year, there were no transfer to voluntary reserve for the year ended December 31, 2020.