33. Capital management

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The objective of the LOTOS Group financial policy is to maintain long-term liquidity, while using an appropriate level of financial leverage to support the achievement of the principal objective of maximising the return on equity for shareholders.

This is achieved through constant effort to develop the desired capital structure at the Group level.

The LOTOS Group uses the debt to equity ratio, calculated as net debt to equity, to monitor its financing structure.

Net debt comprises borrowings, other debt instruments and finance lease liabilities less cash and cash equivalents. Equity includes equity attributable to owners of the Parent plus non-controlling interests.

PLN '000 Note Year ended
Dec 31 2013		 Year ended
Dec 31 2012
Non-current borrowings 27.1 4,183,624 4,315,599
Current borrowings 27.1 1,678,491 2,074,992
Notes 27 198,240 -
Lease liabilities 27.3 151,031 166,109
Cash and cash equivalents 20 (503,686) (268,333)
Net debt   5,707,700 6,288,367
Equity attributable to owners of the Parent   9,189,307 9,065,725
Non-controlling interests   289 699
Total equity   9,189,596 9,066,424
Net debt to equity   0.62 0.69

The figures for the year ended December 31st 2012 have changed in relation to the figures contained in the financial statements published for the previous period as a result of inclusion of lease liabilities in the calculations of net debt.

The Company monitors its financing structure in order to achieve the goal set in the Strategy for the LOTOS Group for the years 2011–2015, that is to reduce debt in order to achieve a debt to equity ratio of no more than 0.4 at the end of the Strategy term.