Annual report eng.2019

N otes To The Consolidated Financial Statements AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES As At 31 December 2019 (All amounts are in Kuwaiti Dinars) OF ACHIEVEMENTS 31. 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: Term loans Islamic bank facilities Total borrowings Less: cash and cash equivalents Net debt Total equity Total capital resources Gearing Ratio 7,364,745 97,182,991 104,547,736 )9,902,507( 94,645,229 92,975,650 187,620,879 50.44% 8,901,011 91,595,101 100,496,112 )7,169,433( 93,326,679 104,123,028 197,449,707 47.27% 2019 2018