Page 98 - JTC-Annual Report-2025-Eng

JTC Logistics Transportation & Stevedoring Company K.S.C.P
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 2025
(All amounts are in Kuwaiti Dinars)

categorisation based on the lowest level input that is significant to the fair value measurement as
a whole at the end of each reporting period.

The management assessed that the fair values of cash and cash equivalents, accounts receivable
and other debit balances (except advance payments), loans and borrowings, accounts payable
and other credit balances (except advances from customers), and lease liabilities approximate
their carrying amounts largely due to the short-term maturities of these instruments.

The basis of the valuation of investment properties is fair value. The investment properties are
revalued annually based on accredited external valuers having experience in the location and
category of investment properties being valued. Valuations are based on discounted cash flows
and current prices in an active market for similar properties of the same location and condition,
subject to similar leases and takes into consideration occupancy rates and returns on investment.
The fair value details of the investment properties is mentioned in Note 8.

28. CAPITAL RISK MANAGEMENT

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 for shareholders and benefits for other
stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the optimal capital resources structure, the Group may adjust the
amount of cash dividends paid to shareholders, reduce paid-up capital, issue new shares, sell
certain assets to reduce debt, repay facilities or obtain additional facilities.
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. 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:

2025 2024
Loans and borrowings 9,147,816 9,310,030

Lease liabilities 946,519 1,196,201

Less: cash and cash equivalents (5,373,010) (6,280,374)
Net debt 4,721,325 4,225,857

Total equity 59,793,195 55,639,547
Total capital resources 64,514,520 59,865,404

Gearing ratio 7.32% 7.06%

95 JTC LogisTiCs TransporTaTion & sTevedoring Company K.s.C.p.