Notes to the Financial Statements
(Cont’d)
For the year ended 30 April 2015
(In Singapore Dollars)
ANNUAL REPORT 2015
98
BUILDING ON OUR EXTENSIVE NETWORK
38. Capital management
The primary objective of the Group’s capital management is to ensure that it maintains a strong credit
rating and healthy capital ratios in order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. 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 April 2015 and 30 April 2014.
The Group monitors capital using a gearing ratio, which is bank borrowings divided by distributable net
assets. The Group’s policy is to keep the gearing ratio at less than 3 times. Bank borrowings include trust
receipts, short-term and long-term loans.
Group
2015
2014
$’000
$’000
Trust receipts
70,641
61,806
Loans (secured)
56,904
52,907
Bank borrowings
127,545
114,713
Equity attributable to the equity holders of the Company
121,034
122,498
Less: Statutory reserve fund
(424)
(424)
Distributable net assets
120,610
122,074
Gearing ratio (times)
1.06
0.94
The Company and certain subsidiaries of the Group are subject to financial covenants for credit facilities
provided by banks. The Company and these subsidiaries are required to maintain certain leverage ratios,
debt service coverage ratios, interest coverage and shareholders’ funds.
As disclosed in Note 30, a subsidiary of the Group is required to maintain a five percent reserve at each
distribution of dividends until the reserve reaches at least ten percent of the subsidiary’s authorised capital.
This externally imposed capital requirement has been complied with by the subsidiary for the financial
years dated 30 April 2015 and 30 April 2014.
39. Segment information
For management purposes, the Group is organised into business units based on their geographical
locations, and has four reportable segments as follows:
I.
South East Asia
II.
North Asia
III.
Africa
IV.
Others
