Notes to The Consolidated Financial Statement
AL MAZAYA HOLDING COMPANY K.S.C. AND ITS SUBSIDIARIES
31 December 2012
30. COMPARATIVE INFORMATION
Certain prior year amounts have been reclassified to conform to current year’s presentation. This reclassification pertains
to accounts receivable and other debit balances being set-off against advances from customers by KD 9,644,716 and
transfer of KD 79,970 from advances from customers to accounts payable and other credit balances. The effect of this
reclassification is summarized as follows:
This reclassification does not have any effect on the consolidated statement of income, comprehensive income or retained
earnings as at 31 December 2011. Such reclassification has been made to improve the quality of information presented.
)9,644,716(
)9,724,686(
79,970
Accounts receivable and other debit balances
Advances from customers
Accounts payable and other credit balances
As previously
reported
KD
Reclassification
KD
After
reclassification
KD
20,576,478
80,451,988
36,251,242
10,931,762
70,727,302
36,331,212
2012
KD
49,415,796
(13,391,425)
36,024,371
87,839,928
41%
Debts
Less: bank balances and cash
Net debt
Equity
Net debt to equity ratio
2011
KD
53,971,842
(23,542,732)
30,429,110
86,866,596
35%
29. CAPITAL MANAGEMENT
The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to
support its business maximise shareholder value and remain within the quantitative loan covenants.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To
maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares. No changes were made in the objectives, policies or processes during the year ended 31
December 2012 and 31 December 2011.
The Group monitors capital using a gearing ratio as per the debt covenant for their loans, which is net debt divided by total
capital plus net debt. The Group’s policy is to keep the gearing ratio below 120%. The Group includes within net debt,
interest bearing loans and borrowings, wakala and murabaha payable and other payables, less bank balances and cash.
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