New Image Annual Report 2012 concept.indd - NZX

Notes to and forming part of the financial
statements (continued)
For the year ended 30 June 2012
Share Capital for the Group
Group
2012 2011
$’000 $’000
Balance 1 July 11,937 11,874
Net Shares Issued - 63
Shares Cancelled (84) -
Share Based Payment Transfer to Ordinary Shares 550 -
Balance 30 June 12,403 11,937
As explained in the accounting policies, the amount recognised as issued capital for the Group is
determined by adding any subsequent share issues by the Company to the issued capital of the legal
subsidiary, New Image International Limited, immediately before the reverse acquisition.
Fully paid ordinary shares carry one vote per share and carry equal rights to dividends and proceeds
on winding up. The shares have no par value.
Group Company
2012 2011 2012 2011
$’000 $’000 $’000 $’000
Balance 1 July 316 154 316 154
Share Based Payments 234 162 234 162
Share Based Payment Transfer to Ordinary Shares (550) - (550) -
Balance 30 June - 316 - 316
21 Capital
Capital Management
Management & Dividends
Management monitor capital through the gearing ratio (net debt/total capital).
56
20 Reserves
Foreign Currency Translation Reserve
The foreign currency translation reserve comprises all foreign exchange differences arising from the
translation of the financial statements of foreign operations of the Group.
Group Company
2012 2011 2012 2011
$’000 $’000 $’000 $’000
Balance 1 July (1,897) (684) - -
Translation Differences (225) (1,213) - -
Balance 30 June (2,122) (1,897) - -
Share Based Payments
Share based payments record the value of share based payments provided to employees and
directors, including Key Management Personnel as part of their remuneration and contracts (refer
Note 27 & 28).
The gearing ratios as at 30 June 2012 and 2011 were as follows:
Group Company
2012 2011 2012 2011
$’000 $’000 $’000 $’000
Total Borrowings 8,678 9,290 - -
Plus Trade & Other Payables 11,386 10,090 - -
Less Cash and Cash Equivalents (6,768) (13,030) - -
Net Debt 13,296 6,350 - -
Total Equity 18,057 22,955 3,981 7,251
Total Capital 31,353 29,305 3,981 7,251
Gearing Ratio 42% 22% 0% 0%
The Group’s current bankers, ANZ National Bank Ltd, do not impose any capital requirements on the
Group via its bank covenants. The Group is subject to interest cover and working capital conditions
only.
In the prior year the Group was subject to an externally imposed capital requirement via a banking
covenant of the Group’s previous bankers, which required the Group’s Tangible Net Worth to Total
Tangible Assets to be greater than 40%. As at 30 June 2011 the Group was compliant with the
externally imposed capital requirement. The HSBC covenant ratios calculated as at 30 June 2011 is
as follows:
57
NEW IMAGE GROUP ANNUAL REPORT
NEW IMAGE GROUP ANNUAL REPORT