Page 60 - FS-Q2-2023-EN

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2023
(All amounts are in Kuwaiti Dinar)

The Group’s maximum exposure arising from default of the counterparty is limited to the carrying amount of cash
and cash equivalents, term deposits, and receivables.

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.

The following table presents the Group’s maturity analysis of the financial liabilities:

June 30, 2023 (Audited)
Less than 1 More than 2
year 1-2 years years Total
Accounts payable and
other credit balances 10,647,496 1,689,689 2,086,318 14,423,503
Lease liabilities 2,037,391 2,014,119 22,257,156 26,308,666
Islamic bank facilities 2,342,627 31,975,217 50,699,872 85,017,716
Total ¤ 15,027,514 35,679,025 75,043,346 125,749,885

December 31, 2022 (audited)
Less than 1 More than 2
year 1-2 years years Total
Accounts payable and
other credit balances 11,735,726 1,468,911 1,820,702 15,025,339
Lease liabilities 1,512,273 1,937,760 23,290,278 26,740,311
Islamic bank facilities 5,718,203 3,943,109 86,131,294 95,792,606
Total 18,966,202 7,349,780 111,242,274 137,558,256

June 30, 2022
Less than 1 More than 2
year 1-2 years years Total
Accounts payable and
other credit balances 10,320,720 1,410,287 1,683,801 13,414,808
Lease liabilities 1,100,109 1,398,653 17,655,854 20,154,616
Islamic bank facilities 5,255,570 6,174,651 87,840,346 99,270,567
Total 16,676,399 8,983,591 107,180,001 132,839,991

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 may reduce its exposure to fluctuations
in foreign exchange rates through the use of derivative financial instruments.

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