42 / 43
AL MAlAYA HOLDING COMPANY K.S.C. (CLOSED) AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
(All amounts are in Kuwaiti Dinars)
c) Foreign currency risk
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. The Group ensures that the net exposure is kept to an acceptable level,
by dealing in currencies that do not fiuctuate significantly against the Kuwaiti Dinar.
The following table demonstrates the sensitivity to a reasonably possible change in the foreign exchange
rates:
Year
Increase
I
decrease
against Kuwaiti Dinars
2008
AED
LBP
5%
5%
2007
AED
USD
LBP
5%
5%
5%
d) Liquidity risk
Effect on profit
Effect on equity
390,515
47,250
2,732,882
4,076
113,334
8,911
79
1,557,939
774
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 and invests in bank deposits or other investments that are readily realizable.
Maturity Table for financial liabilities:
2008
Within 1
month
Accounts payable and other
credit balances
757,182
Term loans
Wakala and Murabaha payables
Deferred consideration on
acquisition of properties
757,182
2007
Within 1
month
Accounts payable and other credit
balances
672,718
Term loans
Wakala and Murabaha payables
Deferred consideration on
acquisition of properties
672,718
1 to 3
3 to 12
months
months
9,745,139
20,951,825
50,063,743
1,070,000
5,000,000
1,645,184
15,834,157
12,460,323
91,849,725
1
to 5
years
Total
76,128,704
107,582,850
50,063,743
6,070,000
34,007,819
197,724,412
16,528,478
92,657,182
1 to 3
3 to 12
months
months
1 to 5 years
Total
4,336,830
42,718,756
47,728,304
50,325,500
4,428,829
54,754,329
7,039,068
3,000,000
10,039,068
38,699,426
38,699,426
11,375,898
96,044,256
43,128,255
151,221.127
40