Mezzan K S C P : Financial Results for the period ended on 31/12/2023

Mezzan Holding Company K.S.C.P and subsidiaries

Consolidated financial statements and independent auditor's report

for the year ended 31 December 2023

Mezzan Holding Company K.S.C.P. (Closed) and subsidiaries

Contents

Independent auditor's report

Consolidated statement of financial position Consolidated statement of profit or loss Consolidated statement of comprehensive income Consolidated statement of changes in equity Consolidated statement of cash flows

Notes to the consolidated financial statements

Pages

1-4

5

6

7

8-9

10

11-58

Deloitte.

Deloitte & Touche

AI-Wazzan& Co.

Ahmed Al-Jaber Street, Sharq

Dar AI-Awadi Complex, Floors 7 & 9

P.O. Box 20174, Safat 13062

Kuwait

Tel	:	[phone], 22438060
Fax	:	[phone], 22452080

www.deloitte.com

INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF MEZZAN HOLDING COMPANY K.S.C.P. Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of Mezzan Holding Company K.S.C.P. ("the Company") and its subsidiaries ("the Group"), which comprise the consolidated statement of financial position as at 31 December 2023, and the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS Accounting Standards) (IFRSs).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
Impairment of goodwill	Our audit procedures included, but were not limited, to the
As at 31 December 2023, goodwill is carried at KD 23 million	following:
which represents 8% of the total assets.	• We obtained an understanding of management's
The impairment test of goodwill performed by	process to identify the cash generating units (CGU) and
the related discounted cash flows;
management is significant to our audit because the	• We evaluated controls over the impairment
assessment of the recoverable amount of goodwill under	assessment process to determine if they had been
the value-in-use basis is complex and requires	appropriately designed and implemented;
management to apply significant judgments and make	• With the support of our internal valuation experts, we
significant estimates. Estimates of future cash flows are	benchmarked and challenged key assumptions
based on management's views of variables such as the	forming the Group's value-in-use calculation including
growth in the sales, economic growth, expected inflation	the cash flow projections and discount rate;
rates and yield.	• We compared actual historical cash flows with
	previous forecasts and assessed differences, if any,
	were within an acceptable range. We assessed the
	overall reasonableness of the cash flow forecasts and
	compared the discount rate and growth rate to market
	data;