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AL MAZA
y
A
HOLDING
COMPANY K.S.C. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2011
MAlAYA
AJMlùlfAO
26.
CAPITAL COMMITMENTS
Letters of guarantee
Capital commitments
201
I
2010
2009
KD
KD
KD
22,876,000
27,650,062
35,880,362
103,054,154
27,650,062
35,880,362
125,930,154
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:
2011
2010
2009
KD
KD
KD
Debts
53,971,842
55,471,120
58,543,936
Less: cash and bank
(23,542,732)
(20,483,961)
(28,180,304)
Net debts
30,429,110
34,987,159
30,363,632
Equity
86,866,596
89,980,720
135,258,983
Net debts to equity ratio
0.35
0.39
0.22
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.
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