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AL MAZAY A HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
MAlAYA
AIM. 1'0 UAO
28.
FINANCIAL INSTRUMENTS (CONTINUED)
Credit risk management
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to
credit risk at the end of the reporting period was:
2011
2010
2009
KD
KD
KD
Bank balances
23,542,732
20,483,961
28,180,304
Trade receivables
18,412,155
6,451,465
l2,430,l37
Murabaha receivables
2,609,309
3,223,456
41,954,887
29,544,735
43,833,897
The Group does not hold any collateral over its assets exposed to credit risk.
The maximum exposure to credit risk for financial assets at the end of the reporting period by geographic
region was:
2011
2010
2009
KD
KD
KD
Inside Kuwait
13,970,502
14,677,260
22,360,353
Outside Kuwait
27,984,385
14,867,475
21,473,544
41,954,887
29,544,735
43,833,897
The fair values of accounts receivable and other debit balances approximated their carrying values as at 31
December 2011.
Trade receivable that are past due for less than 6 months are not considered impaired. As of 31 December trade
receivable amounting to KD 7,074,144 (2010: KD 127,655) were neither past due nor impaired. These relate to a
number of independent customers for whom there is no recent history of default.
Ageing of receivables past due but not impaired
2011
2010
2009
3 to 6 months
KD
11,338,011
KD
6,323,810
KD
29,125,553
The Group does not hold any collateral over these receivables.
Allowance for doubtful debts
2011
2010
2009
KD
KD
KD
Balance at beginning of the year
959,454
800,889
Charge for the year
9,647,663
158,564
800,889
Written off
(157,440)
(99)
Balance at end of the year
10,449,677
959,454
800,889
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