Annual report eng.2018

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2018 136 ANNUAL REPORT 2018 (All amounts are in Kuwaiti Dinars) For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization based on the lowest level input that is significant to the fair value measurement as a whole at the end of each reporting period. 32. Comparative figures Certain of the prior year amounts have been reclassified to conform with the amounts of current year presentation. The details of reclassification are as follows: 33. Capital Risk Management The Group's objectives when managing capital resources are to safeguard the Group's ability to continue as a going concern in order to provide returns and benefits for shareholders and to maintain an optimal capital resources structure to reduce the cost of capital. In order to maintain or adjust the capital resources structure, the Group may adjust the amount of cash dividends paid to shareholders, return paid up capital to shareholders, issue new shares, sell assets to reduce debt, repay facilities or obtain additional facilities. Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total financial facilities less cash and cash equivalents, and term deposits. Total capital is calculated as ‘equity’ as shown in the consolidated statement of financial position plus net debt. For the purpose of capital risk management, the total capital resources consist of the following components: Trade receivables and other debit balances Accounts payables and other credit balances 17,544,507 14,468,891 21,945,575 18,869,959 Amount before reclassification Amount before reclassification Term loans Tawaruq and Ijara Total borrowings Less: cash and cash equivalents Net debt Total equity Total capital resources Gearing Ratio 8,901,011 91,595,101 100,496,112 )7,169,433( 93,326,679 104,123,028 197,449,707 47.27% 11,066,215 81,053,559 92,119,774 )10,931,750( 81,188,024 119,107,881 200,295,905 40.53% 2018 2017

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