90 / 113
The special reserve represented in the transferred amount from the net share premium in 2007 less the amount transferred to
the legal reserve (Note 21).
During 2011, the special reserve was reduced by an amount of EGP 2 990 thousands which represents the difference between
treasury shares purchasing cost amounted to EGP 3 097 thousands and the par value of these shares amounted to EGP 107
thousandwhichwas written off during 2012.
During 2012, the special reserve was reduced by an amount of EGP 2 114 thousands which represents the differences between
treasury shares purchasing cost amounted to EGP 6 365 thousands and its reselling price amounted to EGP 4 251 thousands.
23 Non-controlling Interest
Total
Capital
Reserves
Legal
Reserve
Retained
earnings
December
31, 2016
December
31, 2015
Balance at 1 January
451 578
79 751
30 601
46 730
608660 637 782
Net loss for the year
-
-
-
(124 154)
(124 154)
(41 581)
Transferred to Legal reserve
-
-
667
(667)
-
-
Foreign currency translation results
-
688 409
-
-
688409
26 700
Capital increase
14 019
-
-
-
14 019
10678
Change inNon-controlling interests
(5 929)
-
-
-
(5 929)
4 141
Dividends
-
-
-
(11 367)
(11 367)
(29060)
Balance at the endof the year
459668
768 160
31 268
89456 1 169638 608660
24 Capital Management
TheGroup’s objectiveswhenmanaging capital are to safeguard the Group’s ability to continue on a going concernbasis inorder
to provide returns to shareholders and benefits for other stakeholders who use these financial statements and to maintain an
optimal capital structure to reducing the cost of capital.
In order to maintain an optimal capital structure, the Groupmay adjust the amount of dividends paid to shareholders, return
capital to shareholders or issue new shares.
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 loans and borrowings and notes payables, less cash and cash equivalents. Total capital is calculated
as equity, as shown in the consolidated balance sheet, plus net debt.
2016 ANNUAL REPORT
88
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2016
(In thenotes all amounts are shown inThousandEgyptianPounds unless otherwise stated)