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ANNUAL REPORT
2016
N
otes To The Consolidated Financial Statements
AL MAZAYA HOLDING K.S.C.P. AND ITS SUBSIDIARIES
As At 31 December 2016
31. 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 to maximise shareholder value and remain within the quantitative covenants of bank facilities.
The Group manages and adjusts its capital structure 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, issue
new shares and obtain or settle bank facilities. No changes were made in the objectives, policies or processes during
the year ended 31 December 2016 and 2015.
The Group monitors capital using a gearing ratio as per the debt covenant for their bank facilities, which is net debt
divided by total equity plus net debt. The Group’s policy is to keep the gearing ratio below 60%. The Group includes
within net debt, ijara payable, tawarruq payable less cash and bank balances. The Group considers equity as shown
in the consolidated statement of financial position.
32. SALE OF SUBSIDIARY
On 11 February 2016, one of the Group’s subsidiaries sold its 100% equity interest in Gulf Turkey Gayimenkul
Yatirimlarianonim Sirketi (“GTGYS”) for a total consideration of KD 16,364,294 to Ritim. The sale of GTGYS resulted
in a gain of KD 1,184,979 net of downstream elimination recognised in the consolidated statement of income.
The details of the consideration paid and the fair values of the assets and liabilities sold, equivalent to their carrying
values, are summarised as follows:
Debts
Less: cash and bank balances
Net debt
Equity
Equity and net debt
Gearing Ratio
Assets
Advances for purchase of properties
Other receivables
Cash and bank balances
Total assets transferred
Liabilities
Other payables
Amount due to related parties
Total liabilities transferred
Net assets transferred
Consideration received
Foreign currency translation reserve
Gain on sale of a subsidiary
Less: adjustment for upstream/down-stream transaction
Net gain on sale of a subsidiary
86,636,199
)6,023,890(
80,612,309
119,608,277
200,220,586
40.26%
80,366,446
)1,930,983(
78,435,463
111,454,343
189,889,806
41.31%
12,119,942
501
1,102
12,121,545
)312(
)445,671(
)445,983(
11,675,562
16,364,294
)3,094,556(
1,594,176
)409,197(
1,184,979
2016
KD
2016
KD
2015
KD
126