Financial Quarterly Reports 2008

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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)
e) Equity price risk
Equity price risk is the risk that fair values of equities decrease as the result of changes in level of equity
indices and the value of individual stocks, The equity price risk exposure arises from the Group's investment
in equity securities classified as investments at fair value through income statement and available for sale
investments,
The following table demonstrates the sensitivity to a reasonably possible change in equity indices as a result
of change in the fair value of these investments, to which the Group had significant exposure at December
31,2008:
2008 2007
Change Effect on Change in Effect on
in equity consolidated Effect on equity consolidated Effect on
price statement of consolidated price statement of consolidated
Market indices % income egui~ % income equi!y
Kuwait Stock Exchange ±5% 67 106,447 ±5% 388,728 6,900
Fair value of financial instruments
Fair value is defined as the amount at which the instrument could be exchanged in a current transaction
between knowledgeable willing parties in an arm's length transaction, other than in a forced or liquidation
sale, Fair values are obtained from quoted market prices, discounted cash flow models and other models as
appropriate, As of December 31, the fair values of financial instruments approximate their carrying amounts,
due to their short maturities,
For financial assets and financial liabilities that are liquid or having a short term maturity (less than three
months) it is assumed that the carrying amounts approximate to their fair value, This assumption is also
applied to variable rate financial instruments,
41 , Capital Risk Management
The Group's objectives when managing capital resources are to safeguard the Group's ability to continue as a
going concem in order to provide retums for shareholders and benefits for other stakeholders and to maintain
an optimal capital resources structure to reduce the cost of capital.
In order to maintain or adjust the capital resources structure, the Group may adjust the amount of dividends
paid to shareholders, retum paid up capital to shareholders, issue new shares, sell assets to reduce debt,
repay loans or obtain additional loans.
For the purpose of capital risk management, the total capital resources consist of the following components:
2008 2007
50,063,743
6,070,000
(48,756,857)
7,376,886
155,478,678
162,855,564
54,754,329
10,039,068
(27,500,543)
37,292,854
99,324,919
136,617,773
Term loans
Wa kala and Murabaha payables
and cash equivalents
Net debts
Total equity
Total capital resources
42. Comparative figures
Certain of the prior year amounts have been reclassified to conform with the current year presentation,
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