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AL MAZAYA HOLDING COMPANY K.S,C, (HOLDING) AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER
31,2010
(All amounts are in Kuwaiti Dinars)
Cash on hand and at banks include an amount of KD 11,999.716 (2009 - KD 18,140,492) representing
restricted cash to be used only against construction work.
4.
Accounts receivable and other debit balances
2010
Trade receivable (a)
Advance payments
Advances for capital subscription
Amounts due from related parties (Note 28)
Staff receivables
Other receivables
6,058,934
2,302,053
887,114
8,951
1,387,785
10,644,837
(959,454)
Provision for doubtful accounts (b)
9,685,383
2009
5,142,216
11,938,128
7,163,163
5,365,299
1,254,791
1,468,720
32,332,317
(800,889)
31,531,428
The fair value of accounts receivable and other debit balances approximated their carrying values as at
December31,2010.
a) Trade receivable
Trade receivable that are less than 1 year past due are not considered impaired. As of December 31,2010,
trade receivable amounting to KD 895,366 (2009 - KD 202,169) were past due but not impaired. These relate
to a number of independent customers for whom there is no recent history of default. The ageing analysis of
these trade receivable is as follows:
2010
Less than 3 months
3 to 6 months
6 months to 1 year
Over 1 year
2,503,446
1,250,658
450,010
1,854,820
6,058,934
b) Provision for doubtful accounts
The movement in the provision for doubtful accounts is as follows:
2010
Balance at the beginning of the year
Gain on waiver of capital subscription
(i)
Charged during the year
Provision no longer required (ii) (Note 24)
Written off
Balance at the end of the year
800,889
158,565
959,454
2009
468,432
1,136,453
2,534,273
1,003,058
5,142,216
2009
16,346,304
(7,308,045)
800,889
(7,587,996)
(1,450,263)
800,889
Provisions, written off as uncollectible receivables and utilization of the provision for bad and doubtful debts
are included in the consolidated statement of income
During the year ended December 31, 2008, the Group paid an amount of KD 14,534,904 for subscription in
an investment which was classified under accounts receivable and other debit balances as advances for
capital subscription since the share certificates relating to this investment were not issued up to the date of
issuing the consolidated financial statements for the year ended December 31, 2008. Also, the Group has
provided a 100% provision for the subscribed amount in 2008 consolidated financial statements due to the
uncertainty pertaining to the existence and valuation of the investment. This resulted in a net book value of
KD Nil relating to this investment subscription.
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