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) 47 Maturity Table for financial liabilities: d) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. 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 following table demonstrates the sensitivity to a reasonably possible change in the foreign exchange rate between foreign currencies used by the group and Kuwaiti Dinar. 2020 Increase (decrease) against Kuwaiti Dinar Effect on consolidated statement of profit or loss United Arab Emirates Dirham ±5% + 41,394 Turkish Lira ±5% + 70,142 Omani Riyal ±5% + 202,867 2019 Increase (decrease) against Kuwaiti Dinar Effect on consolidated statement of profit or loss United Arab Emirates Dirham ±5% + 16,613 Turkish Lira ±5% + 284,061 Omani Riyal ±5% +187,906 e) Equity price risk Equity price risk is the risk that fair values of equity instruments decrease as the result of changes in level of equity indices and the value of individual stocks. To manage such risks, the Group diversifies its investments in different sectors within its investment portfolio and are continuously monitored. 2020 Less than 1 year 1-2 years More than 2 years Total Accounts payable and other credit balances 6,585,631 6,389,444 1,717,981 14,693,056 Lease liabilities 1,314,272 1,225,112 10,530,276 13,069,660 Islamic bank facilities 16,573,980 7,025,332 74,418,920 98,018,232 Total 24,473,883 14,639,888 86,667,177 125,780,948 2019 Less than 1 year 1-2 years More than 2 years Total Accounts payable and other credit balances 6,093,979 4,463,578 5,214,598 15,772,155 Lease liabilities 1,027,062 1,166,773 11,755,387 13,949,222 Islamic bank facilities 5,314,744 19,049,121 72,819,126 97,182,991 Term loans 1,960,726 5,404,019 - 7,364,745 Total 14,396,511 30,083,491 89,789,111 134,269,113