hamburger--arrow

Chairman's Message

CEO

In the name of Allah, praise be to the Almighty, peace and blessings and upon Prophet Mohamed, the best honorable of all mankind, his family, companions and followers till the Day of Judgment.
Dear Shareholders …… Peace and blessings of Allah be upon you.
It gives me pleasure to welcome you at this General Assembly Meeting and to present to you the annual report of A’Ayan Leasing and Investment Company, Sharia Supervisory Board Report, Corporate Governance Report, the Audit Committee Report, the Auditors’ Report and the Consolidated financial statements for the financial year ended 31 December 2020.
Year 2020 was an exceptional year by all interpretation for A’Ayan Leasing and Investment Company “Company” and its subsidiaries companies “Group”. The year started with many challenges on all fronts. The novel Corona virus pandemic has cast a shadow over all aspects of life, and many economic sectors have been affected for many reasons. The most important of such reasons and is the precautionary measures that the State of Kuwait saw and the accompanying suspension of many commercial activities. However, such measures were similar to those adopted by others over the globe. In light of these exceptional circumstances, the Group endeavored in order to achieve its goals and interact with all its stakeholders as they were and will remain professionally entrusted to the Group.
As outlined in our message to you last year, the Company had appealed against the court ruling issued by the Financial Stability Court on 4/12/2019 rejecting the Company’s request for a final settlement of its debt. However, thanks to God and the sincere efforts of the company in preparing the appeal against the ruling before the Court of Cassation, the Court of Cassation issued a judgment on 19/8/2020 accepting the appeal and ratifying the amendment of the payment plan and the suspension of litigaticon procedures during the period until 2024.
Immediately after the ruling, the Company began communicating with all its creditors in order to close this file, which spanned many years. Within a short period, the Company was able to complete the final settlement process with most of the creditors, which resulted in settling approximately 93% of the Company’s debt towards creditors. Our efforts shall continue in order to finalize the settlement of the remainder of the Islamic Financing payable with the rest of the creditors as soon as possible. Accordingly, the Company was able to enhance its financial position and cover all the accumulated losses over the past years. The following is a comparison of the Group’s financial position in 2011 before entering into the restructuring plan and its financial position as at the end of 2020. The most important financial indicators of the Group as at the end of the year are as follows:

 Financial Indicators (in Kuwaiti Dinars)31/12/2011 31/12/2020 
 Islamic finance payable384,564,213  11,724,029 
Retained Earnings / (Accumulated Losses) attributable to Equity holders of Company(42,700,539)130,727
Net profit / (loss) for the year attributable to Equity holders of Company(18,826,574)  20,685,366 
(Deficit)/Equity attributable to Equity holders of Company(11,972,637)  91,190,060 
Total Assets454,691,843 146,690,786 
Total Liabilities420,190,748  43,100,247 
Excess/(Shortfall) of Current Assets Over Current Liabilities (193,345,837)  38,786,139 
Capital Adequacy Ratio (as required by Regulatory Authority)No Requirements242%

The Board of Directors also recommended a reduction of the Company’s share capital through cash distribution of, which represents 12.28% of the Company’s Existing share capital. The said recommendation is subject to the approval of the extraordinary general assembly of the Company after obtaining the approval of the relevant regulatory authorities concerning this recommendation.
As such, the Company has gone through a difficult period in its history that spanned for years in which the Company committed itself to the restructuring plan, during which it was obliged to exit from many of its assets in order to fulfill its obligations. In this regard, I wish to extend my sincere thanks to my brothers, members of the Board of Directors and the Company’s employees, who worked side by side in order to overcome the challenges of the previous phase and contributed to preserve the position of the Company.
Today, the Company started new era with a strong financial position, and a balanced financial policy that defines its strategy during the upcoming stages. Thus, A’Ayan Leasing and Investment Company would present a successful model in overcoming crises and marching ahead, towards new future successes for the shareholders of the Company, God willing