Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
55
31 December 2012
9,040,000
9,225,000
1,022,483
-
3,120,435
22,407,918
-
9,300,000
3,180,783
3,947,108
-
16,427,891
9,040,000
44,625,000
17,443,352
3,947,108
3,120,435
78,175,895
-
26,100,000
13,240,086
-
-
39,340,086
Wakala and murabaha payables
Term loans
Accounts payable and other credit balances
Deferred consideration on acquisition of
properties
Bank overdraft
Total undiscounted liabilities
Within 1 year
KD
1 - 2 years
KD
2 - 5 years
KD
Total
KD
2,933,113
3,666,391
14,665,565
8,066,061
Capital commitments
Within 1 year
KD
1 - 2 years
KD
2 - 5 years
KD
Total
KD
Commitments
28.2 Liquidity risk
Liquidity risk is the risk that the Group will be unable to meet its liabilities when they fall due. To limit this risk, management
has arranged diversified funding sources, manages assets with liquidity in mind, and monitors liquidity on a daily basis.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
deposits and loans.
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted
repayment obligations. The liquidity profile of financial liabilities reflects the projected cash flows which includes future
interest payments over the life of these financial liabilities.
2012
KD
10,449,677
236,167
(9,713,350)
972,494
Balance at the beginning of the year
Charge for the year
Written off
Balance at the end of the year
2011
KD
959,454
9,647,663
(157,440)
10,449,677
28.1.2 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.
28.1.3 Past due and impaired
The Group does not have any past due but not impaired financial assets as at 31 December 2012 and 31 December 2011.
Gross amount due amounting to KD 2,129,737 (2011: KD 10,449,677) were impaired with a provision of KD 972,494
(2011: KD 10,449,677). The movement in provision allowance during the year is as follows:
Allowance for doubtful debts for receivables
