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N
otes To The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES
As At 31 December 2016
ANNUAL REPORT
2016
30.1.1 Gross maximum exposure to credit risk
The table below shows the gross maximum exposure to credit risk across the Group’s financial assets.
Financial assets of the Group subject to credit risk are distributed over the following geographical regions:
The Group’s exposure relates predominately to real estate and construction sectors.
There is no concentration of credit risk with respect to real estate receivables, as the Group has a large number of
tenants.
30.1.2 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.
30.1.3 Past due and impaired
The Group does not have any past due but not impaired financial assets as at 31 December 2016 and 2015.
Kuwait
UAE
Turkey
Other
4,739,049
11,646,745
9,101,695
1,336,057
26,823,546
7,511,877
13,025,378
-
7,645
20,544,900
2016
KD
2015
KD
30.2 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 facilities.
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 finance cost payments over the life of these financial liabilities.
Within
1 year KD
12- years
KD
Term Loans
Tawarruq and ijara payable
Accounts payable and other credit balances
Total undiscounted liabilities
Capital commitments
Over 2
years KD
Total
KD
2,912,234
13,641,941
13,585,304
30,139,479
3,682,140
1,870,280
15,912,055
3,217,127
20,999,462
4,602,675
6,779,524
59,427,931
3,073,984
69,281,439
10,125,884
11,562,038
88,981,927
19,876,415
120,420,380
18,410,699
31 December 2016
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