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) 44 Balances included in the consolidated statement of financial position: During the year ended December 31,2020, a property accounted for by the Group as a leased property under IFRS 16 has been acquired by a board member from its previous owner. Based on that, the Group’s lease liability towards that property had been reassigned towards the new owner under the same terms and conditions of the original contractual lease terms with the old owner for the remaining lease term which ends on August 2029. During the year ended December 31,2020 an amount of KD 360,000 was paid for lease liability for that property since acquired by new owner. The amounts recognized for this lease liability as of December 31, 2020 that compose part of the Groups’ consolidated lease liabilities can be presented as follows: 2020 2019 Lease liability within one year 585,000 - Remaining liability till end of lease term 4,293,000 - Total lease liability 4,878,000 - Less: Unamortized future finance charge (904,313) - Present value of minimum lease payments 3,973,687 - During the year ended December 31,2020, the Parent Company has recognized an expense amounting to KD 22,608 (2019 - KD 97,880) relating to equity-settled share-based payment transactions to its employees. During the year, eligible employees had exercised their share options with 1,480,157 shares, and these shares were issued from treasury shares held with the Group. Related party transactions are subject to the Shareholders’ Annual General Assembly of the Parent Company. 25. Board of Directors proposals and Shareholders’ Annual General Assembly of the parent company The Board of Directors’ meeting held on January 31, 2021 proposed the following: - Not to distribute dividends or bonus shares for the year ended December 31, 2020. - Not to pay remuneration to the Board of Directors for the year ended December 31, 2020. - Setting off the full balance of accumulated losses as of December 31, 2020 by reducing the statutory reserve against those losses. - Cancel the balance of treasury shares owned directly by the Parent Company by reducing the Parent Company’s share capital with the par value of those cancelled shares in addition to reducing both the statutory reserve and share premium respectively. Key management personnel Other related parties 2020 2019 Accounts receivable and other debit balances - 140,371 140,371 - Accounts payable and other credit balances 90,000 - 90,000 - Lease liabilities 3,973,687 - 3,973,687 - Transactions included in the consolidated statement of profit or loss: Management fees income 125,157 - 125,157 - Amortization of finance costs related to lease liabilities (200,751) - (200,751) - Key Management personnel 2020 2019 Short term benefits 529,398 541,914 End of service indemnity 56,566 53,846 Share-based payments 22,608 97,880 BOD committees’ remuneration 70,000 70,000