Annual report eng.2018

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2018 132 ANNUAL REPORT 2018 (All amounts are in Kuwaiti Dinars) ±20,000 ±44,505 ±64,505 ±55,331 4,000,000 8,901,011 11,066,215 2018 2017 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% ± 2017 Kuwait UAE Turkey KSA Others Total 30. 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, Tawarruq and Ijara payable 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. a) Interest rate and finance cost risk Financial instruments are subject to the risk of changes in value due to changes in the level of interest for its financial assets and liabilities carrying floating interest rates. The effective interest rates, 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, with all other variables held constant, of the Group’s profit through the impact on floating rate borrowings and finance cost: Term deposit Term loan Term loan b) Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation causing the other party to incur a financial loss. Financial assets that potentially subject the Group to credit risk consist principally of cash and cash equivalent, receivables and due from related parties. The Group’s cash and bank deposits are placed with high credit rating financial institutions. Receivables and due from related parties are presented net of provision for doubtful debt. Revenue Cost of revenue Net change in fair value of investment properties Share of result from associate & joint venture Reversal of impairment loss on properties held for trading General and administrative & selling and marketing expenses Net other (expenses) & income Finance cost Others Segment (loss) profit Total segment assets Total segment liabilities 3,519,286 )2,590,700( 806,409 339,582 - )1,157,615( )116,137( )2,606,059( )28,345( )1,833,579( 81,713,748 64,931,201 55,477,645 )49,496,436( 1,709,201 - 1,611,217 )2,868,823( 2,276,747 )872,219( - 7,837,332 94,135,699 33,862,037 1,164,293 - 324,080 - - )64,473( - - - 1,423,900 16,235,027 174,750 7,446,170 )5,816,926( 2,497,979 - - )658,065( )2,670,732( )797,413( - 1,013 27,796,452 14,000,856 1,002,852 )562,118( )94,751( - 768,269 )69,968( )188,853( - - 855,431 14,330,881 2,135,082 68,610,246 )58,466,180( 5,242,918 339,582 2,379,486 )4,818,944( )698,975( )4,275,691( )28,345( 8,284,097 234,211,807 115,103,926