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 134 ANNUAL REPORT 2018 (All amounts are in Kuwaiti Dinars) The Group’s maximum exposure arising from default of the counter-party is limited to the carrying amount of cash at banks, receivables and due from related parties. c) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in raising funds to meet commitments associated with financial instruments. To manage this risk, the Group periodically assesses the financial viability of customers. Maturity Table for financial liabilities d) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. The Group incurs foreign currency risk on transactions that are denominated in a currency other than the Kuwaiti Dinar. The Group ensures that the net exposure is kept to an acceptable level, by dealing in currencies that do not fluctuate significantly against the Kuwaiti Dinar. The following table demonstrates the sensitivity to a reasonably possible change in the foreign exchange rate between foreign currencies used by the group and Kuwaiti Dinar. Less than 1 year Less than 1 year 1 -2 years 1- 2 years Term loans Tawarruq and Ijara payable Accounts payable Total Capital commitments Term loans Tawarruq and Ijara payable Accounts payable Total Capital commitments More than 2 years More than 2 years Total Total 1,338,289 13,230,013 12,377,570 26,945,872 530,047 2,292,375 17,936,382 6,056,698 26,285,455 7,535,640 765,785 15,841,662 4,594,917 21,202,364 6,268,292 1,822,472 17,001,258 8,862,806 27,686,536 702,106 6,796,937 62,523,426 1,495,906 70,816,269 - 6,951,368 46,115,919 3,950,455 57,017,742 - 8,901,011 91,595,101 18,468,393 118,964,505 6,798,339 11,066,215 81,053,559 18,869,959 110,989,733 8,237,746 2018 2017 ±479,938 ±19,116 ±23,659 2018 Increase (decrease) against Kuwaiti Dinar Effect on consolidated statement of profit or loss 5% ± 5% ± 5% ± United Arab Emirates Dirham Turkish Lira Omani Riyal