Annual report eng.2019

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2019 (All amounts are in Kuwaiti Dinars) OF ACHIEVEMENTS ±25,000 ±36,824 ±485,915 ±547,739 ±20,000 ±44,505 ±457,976 ±522,481 5,000,000 7,364,745 97,182,991 4,000,000 8,901,011 91,595,101 2019 2018 Increase (Decrease) in interest rate Increase (Decrease) in interest rate Balance Balance Effect on consolidated statement of profit or loss Effect on consolidated statement of profit or loss 0.5% ± 0.5% 0.5% ± ± 2018 Kuwait UAE Turkey KSA Others Total 29. Financial risk management In the normal course of business, the Group uses primary financial instruments such as cash and cash equivalents, financial assets at FVPL, accounts receivable, financial assets at FVOCI, accounts payable, lease liabilities, Islamic bank facilities, and term loans and as a result, is exposed to the risks indicated below. The Group currently does not use derivative financial instruments to manage its exposure to these risks. Interest rate, profit rate and finance cost risk Financial instruments are subject to the risk of changes in value due to changes in the level of interest rate, profit rate, or finance cost for its financial assets and liabilities carrying floating interest rates. The effective interest rates, profit rates and finance cost and the periods in which interest-bearing financial assets and liabilities are repriced or mature are indicated in the respective notes. The following table demonstrates the sensitivity to a reasonably possible change in interest rates, profit rates, and finance cost with all other variables held constant, of the Group’s profit: a) Term deposit Term loan Islamic bank facilities Term deposit Term loan Islamic bank facilities Revenue Cost of revenue Change in fair value of investment properties Share of result from associate and joint venture (Impairment loss) reversal of impairment loss on properties held for trading General and administrative & selling and marketing expenses Net other (expenses) income Finance cost Others Segment profit (loss) Total segment assets Total segment liabilities 4,420,169 )720,809( 2,679,965 1,501,354 - )2,630,899( )1,070,109( )3,052,814( 963,175 2,090,032 98,954,300 72,186,443 11,239,168 )7,685,453( 59,892 - )26,426( )2,507,068( 3,293,419 )1,009,185( )201,432( 3,162,915 74,279,938 32,101,531 1,007,869 )169,090( )525,479( - - )19,469( )270,532( - )11,884( 11,415 15,748,126 222,280 1,618,487 )1,293,592( 452,854 - - )502,768( 173,439 )702,015( - )253,595( 17,406,591 10,279,055 3,770,405 )2,748,008( 50,648 - 85,220 )137,942( )88,665( )109,107( - 822,551 19,232,944 6,709,562 22,056,098 )12,616,952( 2,717,880 1,501,354 58,794 )5,798,146( 2,037,552 )4,873,121( 749,859 5,833,318 225,621,899 121,498,871 5% ± 5% ± 5% ±