Mazaya_FS_E Q4. 20

AL-MAZAYA HOLDING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2020 (All amounts are in Kuwaiti Dinars) 35 The following table details the risk profile of trade receivables based on the Group’s provision matrix. 2020 Less than 30 days 31 – 60 days 61 – 90 days 91- 180 days More than 180 days Total Expected credit loss rate 3.91% 7.80% 14.60% 23.37% 100.00% - Gross carrying amount 7,844,747 144,917 509,608 419,329 2,158,473 11,077,074 Allowances for expected credit loss 306,730 11,300 74,402 97,997 2,158,473 2,648,902 2019 Less than 30 days 31 – 60 days 61 – 90 days 91- 180 days More than 180 days Total Expected credit loss rate 2.73% 5.46% 8.20% 16.39% 100.00% - Gross carrying amount 10,339,872 105,154 657,455 278,221 1,757,107 13,137,809 Allowances for expected credit loss 282,279 5,741 53,911 45,600 1,757,107 2,144,638 b- Allowance for expected credit losses: The movement in allowance for credit losses is as follows: Trade receivables Other receivables 2020 2019 Balance at the beginning of the year 2,144,638 8,330,902 10,475,540 10,649,167 Charge for the year 777,384 1,277,980 2,055,364 840,706 Allowance for expected credit losses no longer required (240,534) - (240,534) (1,075,524) Foreign currency translation adjustments (32,586) (2,539) (35,125) 61,191 Balance at the end of the year 2,648,902 9,606,343 12,255,245 10,475,540 6. Properties held for trading The movement in properties held for trading is as follows: 2020 2019 Balance at the beginning of the year 17,079,258 41,741,409 Additions 306,505 7,677,484 Transferred to investment property (Note 9) - (9,567,298) Disposals (9,450,324) (20,014,395) Impairment loss on property held for trading (838,351) (2,470,542) Foreign currency translation adjustments (186,775) (287,400) Balance at the end of the year 6,910,313 17,079,258 Net realizable value for properties held for trading is determined by independent valuers in compliance with the Executive Regulations of Capital Markets Authority regarding the valuation of real estate properties. Properties held for trading mainly comprise of the following: 2020 2019 Properties under development - 6,256,794 Developed properties 6,910,313 10,822,464 6,910,313 17,079,258 Certain properties held for trading amounting to KD 4,532,434 (2019 – KD 7,602,681) are pledged as collateral against Islamic bank facilities and term loans (Note 13 and 14).