Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C.P. AND ITS SUBSIDIARIES
31 December 2013
55
2012
KD
972,494
-
-
972,494
Balance at the beginning of the year
Charge for the year
Written off
Balance at the end of the year
2011
KD
10,449,677
236,167
(9,713,350)
972,494
The Group trades only with recognised, creditworthy third parties. In addition, receivable balances are monitored on an
ongoing basis. For transactions that do not occur in the country of the relevant operating unit, the Group does not offer
credit terms without the approval of the Group management.
With respect to credit risk arising from the other financial assets of the Group, which comprise bank balances, short term
deposits and account receivables, the Group’s exposure to credit risk arising from default of the counterparty, with a
maximum exposure equal to the carrying amount these instruments.
Due to the nature of the Group’s business, the Group does not take possession of collaterals.
The financial assets of the Group are distributed over the following geographical regions:
30.1.1 Gross maximum exposure to credit risk
The table below shows the gross maximum exposure to credit risk across the Group’s financial assets.
The Group’s exposure is predominately to real estate and construction sectors.
There is no concentration of credit risk with respect to real estate receivables, as the Group has a large number of tenants.
30.1.2 Credit quality of financial assets that are neither past due nor impaired
The Group neither uses internal credit grading system nor external credit grades. The Group manages credit quality by
ensuring that credit is granted only to known creditworthy parties.
30.1.3 Past due and impaired
The Group does not have any past due but not impaired financial assets as at 31 December 2013 and 31 December 2012.
Gross amount due amounting to KD 2,129,737 (2012: KD 2,129,737) were impaired with a provision of KD 972,494
(2012: KD 972,494). The movement in provision allowance during the year is as follows:
Allowance for doubtful debts for receivables
2013
KD
6,280,165
16,163,114
7,224
22,450,503
Geographical regions:
Kuwait
Dubai
Other
2012
KD
5,460,094
12,822,242
7,030
18,289,366
2013
KD
17,440,462
5,010,041
22,450,503
Bank balances and short term deposits
Accounts receivable
2012
KD
13,386,421
4,902,945
18,289,366
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