AB Akola Group – Annual report – 30 June 2024
Industry: agriculture
30. Financial assets and liabilities and risk management (extract)
Capital management
For capital management purposes the Group’s capital is equal to total equity in the statement of financial position amounting to EUR 312,319 thousand as at 30 June 2024 (EUR 292,138 thousand as at 30 June 2023)1.
The primary objective of the Group’s capital management is to ensure that it maintains a strong creditworthiness and healthy capital ratios in order to support its business and maximize shareholder value. The Group holds high capital for possible future expansion and further development of the Group.
The Group manages its capital structure and adjusts it in the light of changes in economic conditions and the risk characteristics of its activities. 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 years ended 30 June 2024 and 30 June 2023.
The Company and the Group’s subsidiaries registered in Lithuania and Estonia are obliged to keep its equity at no less than 50% of its share capital, as imposed by the Laws on Companies of the Republic of Lithuania and the Republic of Estonia. As at 30 June 2024 the both Company and the Group’s subsidiaries registered in Lithuania and Estonia comply with this requirement, except the subsidiaries Kaišiadorių paukštyno mažmena UAB, Baltoji Plunksnele KB, Uogintai UAB, KG Esesti OU, Dotnuva Rent UAB, Akola poultry UAB, Linas Agro OU.
As at 30 June 2023 all the subsidiaries registered in the Lithuania and Estonia complied with the requirements, except the subsidiaries Kaišiadorių Paukštyno Mažmena UAB, Baltoji Plunksnelė KB, Gastroneta UAB, Dotnuva Rent UAB, Akola Poultry UAB, Gerera UAB, KG Eesti OU, Dotnuva Baltic AS.
Group’s subsidiaries registered in the Republic of Latvia are obligated to keep their equity higher than 0, as it is imposed by the Laws on Companies of the Republic of Latvia. All the subsidiaries, except SIA PFK Trader, complied with the requirements.
The Group and the Company manages capital using a leverage ratio, which is 1 minus total equity divided by total assets of the Group and the Company. The Group’s policy is to keep the leverage ratio below 75%.
1 The amounts do not match the financial statements prepared for the year ended 30 June 2023, due to the retrospective correction of errors from the previous period. More information is disclosed in Note 2.22.
Accounts examples 