34. Capital management
The Group’s objectives when managing capital are to safeguard the Group’s ability
to continue as a going concern and to maintain an optimal capital structure so as to
maximise shareholder value. In order to maintain or achieve an optimal capital structure,
the Group may adjust the amount of dividend payment, return capital to shareholders,
issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce
borrowings. No changes were made in objectives, policies or processes during the years
ended 30 June 2015 and 2014.
Group
2015
2014
$’000 $’000
Net profit attributable to owners of the Company
7,931 22,118
Equity attributable to the owners of the Company
419,523 410,602
Return on shareholders’ funds
1.9% 5.4%
Interest-bearing loans and borrowings (Note 17)
473,506 438,879
Trust receipts (Note 16)
68,847 100,204
Bank overdraft (Note 18)
1,130
6,724
Less: Cash and bank balances (Note 13)
(77,919)
(73,155)
Net borrowings
465,564 472,652
Net gearing ratio (times)
1.11
1.15
The return on shareholders’ funds is calculated based on net profit attributable to owners
of the Company divided by shareholders’ funds as at the end of the reporting period.
The net gearing (times) ratio is calculated based on net borrowings divided by shareholders’
funds. Net borrowings is the sum of total interest-bearing loans and borrowings (Note 17),
trust receipts (Note 16), bank overdraft (Note 18), less cash and bank balances (Note 13).
The Group and the Company are in compliance with all externally imposed financial
covenant requirements for the financial years ended 30 June 2015 and 2014.
35. Fair value of assets and liabilities
(a) Fair value hierarchy
The Group and the Company classify fair value measurement using a fair value that
is dependent on the valuation inputs used as follows:
Level 1:
Quoted prices (unadjusted) in active markets of identical assets or
liabilities that the Group can access at the measurement date
Level 2:
Inputs other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly or indirectly
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
158
