36.
CAPITAL MANAGEMENT
The primary objective of the Group’s capital management is to safeguard the Group’s ability to continue
as a going concern and to maintain healthy capital ratios in order to support its business and maximise
shareholder’s 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 31 December 2015 and 31 December 2014.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital. Net debt, is
defined as total loans and borrowings less cash and bank balances. Capital is defined as equity attributable
to the equity holders of the Company. The Group’s policy is to keep the gearing ratio below 1.
Group
2015
2014
$’000
$’000
Loans and borrowings (Note 27)
5,288
10,095
Less: Cash and bank balances (Note 25), excluding cash deposited
under investment portfolio account, pledged fixed deposits and
restricted cash
(22,783)
(20,275)
Net debt/(cash)
(17,495)
(10,180)
Equity attributable to the equity holders of the Parent
116,226
131,217
Gearing ratio
*
*
*
Not applicable as the Group is in net cash position.
I N N O T E K L I M I T E D
A N N U A L R E P O R T 2 0 1 5
120
NOTES TO THE FINANCIAL
STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
