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21.Other reserves
Foreign
currency
translation
reserve
ESOP
(Fair value)
reserve
Surplus
revaluation
of fixed assets
reserve
Share
premium
(special
reserves)
Total
Balance as at 1 January 2017
1 235 511
86 440
259 585
967 439
2 548 975
Foreign currency translation differences
56 356
-
-
-
56 356
ESOP fair value
-
2 442
-
-
2 442
Modificationsurplusoffixedassetsafter incometax
-
-
(94 167)
-
(94 167)
Results of sale of shares held by the group
-
-
-
(50 638)
(50 638)
Balance at December 31, 2017
1 291 867
88 882
165 418
916 801
2 462 968
The special reserve represented in the transferred amount from the net share premium in 2007 less the amount
transferred to the legal reserve (Note 20).
During 2011, the special reserve was reduced by an amount of EGP 2 990 thousand which represents the differ-
ence between treasury shares purchasing cost amounted to EGP 3 097 thousand and the par value of these shares
amounted to EGP 107 thousand which was written off during 2012.
During 2012, the special reserve was reduced by an amount of EGP 2 114 thousand which represents the differences
between treasury shares purchasing cost amounted to EGP 6 365 thousand and its reselling price amounted to EGP
4 251 thousand.
At the date of February 23, 2017, was sold the number of 26 506 119 shares and the special reserve was reduced
by an amount of EGP 50 638 thousand which represents the differences between treasury shares purchasing cost
amounted to EGP 126 231 thousand and its reselling price amounted to EGP 75 593 thousand.
22.Non-controlling interest
Total
Capital
Reserves
Legal
reserve
Retained
earnings
December 31,
2017
December 31,
2016
Balance at 1 January
459 668
768 160
31 269
(89 459)
1 169 638
608 660
Net loss for the year
-
-
-
(56 755)
(56 755)
(124 154)
Foreign currency translation results
-
12 623
-
-
12 623
688 409
Capital increase
1 750
-
-
-
1 750
14 019
Change in Non-controlling interests
4 000
-
-
40 702
44 702
(5 929)
Transferred to Legal reserve
-
-
950
-
950
-
Dividends
-
-
-
(9 750)
(9 750)
(11 367)
Balance at the end of the year
465 418
780 783
32 219
(115 262)
1 163 158
1 169 638
23.Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue on a going concern
basis in order to provide returns to shareholders and benefits for other stakeholders who use these financial state-
ments and tomaintain 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 sharehold-
ers, 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.
The gearing ratio at December 31, 2017 and December 31, 2016 were as follows:
Total loans and borrowings and notes payable
December 31,
2017
December 31,
2016
Loans, borrowings and overdrafts
9 485 296
8 732 109
Short-termnotes payable and suppliers
119 784
222 697
Long-termnotes payables and creditors
558
-
Total loans and borrowings and notes payables
9 605 638
8 954 806
Less:
Cash and cash equivalent
(1 242 122)
(1 225 300)
Letters of credit margin
(11 418)
(83 437)
Letters of guaranteemargin
(84 892)
(56 813)
Net debt
8 267 206
7 589 256
Shareholders’ equity
4 321 302
3 821 711
Net debt to equity ratio
1.91
1.99
24.Loans, borrowings and overdrafts
December 31, 2017
December 31, 2016
Current
portion
Long-term
portion
Total
Current
portion
Long-term
portion
Total
Banks overdraft
6 099 761
-
6 099 761
6 474 248
-
6 474 248
Loans
941 208
2 486 127
3 427 335
594 371
1 554 772
2 149 143
Related parties’ loans
-
87 696
87 696
-
108 718
108 718
Total
7 040 969
2 573 823
9 614 792
7 068 619
1 663 490
8 732 109
A. Banks overdraft
The average interest rate on the outstanding Egyptian Pounds and the US Dollars bank overdraft are 21.2% and
5.69% respectively.
B. Loans from related parties
•
The Group obtained loans fromMarco Polo [a related party - Brazil] in US dollars with an interest rate of LIBOR
+ 3%. These loans balance amounted to EGP 87 696 thousand as at December 30, 2017 and to be settled on an
annual installment.
•
The analysis of the loans and banks overdraft balances according to their maturity dates is as follows:
December 31,
2017
December 31,
2016
Less than one year
7 040 969
7 068 619
More than one year and less than five years
2 573 823
1 663 490
9 614 792
8 732 109
88 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 89
GB Auto (S.A.E.)
Notes to the consolidated financial statements for the financial year ended December 31, 2017
(In the notes all amounts are shown in Thousand Egyptian Pounds unless otherwise stated)