Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
28.3 Market risk
Market risk is the risk that the value of an asset will fluctuate as a result of changes in market variables such as interest rates,
foreign exchange rates and equity prices, whether those changes are caused by factors specific to the individual investment
or its issuer or factors affecting all investments traded in the market.
Market risk is managed on the basis of pre-determined asset allocations across various asset categories, diversification of
assets in terms of geographical distribution and industry concentration, a continuous appraisal of market conditions and
trends and management’s estimate of long and short term changes in fair value.
28.3.1 Interest rate risk
Interest rate risk arises from the possibility that changes in interest rates will affect future profitability or the fair values of
financial instruments. Interest rate risk is managed by the finance department of the Parent Company. The Group is exposed
to interest rate risk on its interest bearing assets and liabilities (bank deposits, loans and borrowings and bonds) as a result
of mismatches of interest rate repricing of assets and liabilities. It is the Group's policy to manage its interest cost using a
mix of fixed and variable rate debts. The Group's policy is to keep a substantial portion of its borrowings at variable rates
of interest.
31 December 2011
9,040,000
4,500,000
36,331,212
3,866,170
3,120,434
56,857,816
-
6,337,800
-
-
-
6,337,800
9,040,000
44,639,400
36,331,212
3,866,170
3,120,434
96,997,216
-
33,801,600
-
-
-
33,801,600
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
5,530,012
6,912,516
27,650,062
15,207,534
Capital commitments
Within 1 year
KD
1 - 2 years
KD
2 - 5 years
KD
Total
KD
Commitments
56
