Notes to The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C. (HOLDING) AND ITS SUBSIDIARIES
For the year ended 31 December 2011
46
26. CAPITAL COMMITMENTS
-
27,650,062
27,650,062
-
35,880,362
35,880,362
22,876,000
103,054,154
125,930,154
Letters of guarantee
Capital commitments
2011
KD
2010
KD
2009
KD
27. CAPITAL RISK MANAGEMENT
The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return
to shareholders through the optimisation of the debt and equity balance. The Group’s overall strategy remains unchanged
from previous year.
Gearing ratio
The gearing ratio at the year end was as follows:
28. FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group’s Management provides services to the business and monitors and manages the financial risks relating to the
operations of the Group. These risks include market risk (including foreign currency risk, interest rate risk and equity price
risk), credit risk and liquidity risk.
Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and
control market risk exposures within acceptable parameters, while optimising the return.
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates, interest
rates and equity prices.
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate
fluctuations arise. Exchange rate exposures are managed within approved policy parameters.
The carrying amounts of the Group’s foreign currency denominated monetary assets and liabilities at the end of the
reporting period were insignificant.
Foreign currency sensitivity analysis
The Group has minimal exposure to the foreign currency exchange rate fluctuations.
53,971,842
)23,542,732(
30,429,110
86,866,596
0.35
55,471,120
)20,483,961(
34,987,159
89,980,720
0.39
58,543,936
)28,180,304(
30,363,632
135,258,983
0.22
Debts
Less: cash and bank
Net debts
Equity
Net debts to equity ratio
2011
KD
2010
KD
2009
KD
