Hatching For The Future - teo seng capital berhad

Teo Seng Capital Berhad
Notes To The Financial Statements
For The Financial Year Ended 31 March 2012
36. FINANCIAL INSTRUMENTS (cont’d)
36.1 Financial Risk Management Policies (cont’d)
(c) Liquidity risk (cont’d)
Contractual
Carrying undiscounted
amount cash flows Within 1 year
RM RM RM
Company - 2012
Trade and other payables 10,972,782 10,972,782 10,972,782
Company - 2011
Trade and other payables 9,350,933 9,350,933 9,350,933
36.2 Capital Risk Management
The Group manages its capital to ensure that entities within the Group will be able to maintain an optimal capital
structure so as to support their businesses and maximise shareholders’ value.
The Group manages its capital based on gearing ratio. The Group’s strategies are unchanged from the previous
financial year. The gearing ratio is calculated as total borrowings divided by total equity.
The gearing ratio of the Group as at the end of the reporting period was as follows :
Group
2012 2011
RM
RM
Hire purchase payables 14,405,687 8,339,755
Bank borrowings 51,864,429 47,676,485
Total borrowings 66,270,116 56,016,240
Total equity 114,177,029 99,557,919
Gearing ratio 0.58 0.56
Under the requirement of Bursa Malaysia Practice Note No. 17/2005, the Company is required to maintain a
consolidated shareholders’ equity (total equity attributable to owners of the Company) equal to or not less than
the 25% of the issued and paid-up share capital (excluding treasury shares) and such shareholder’s equity is not
less than RM 40 million. The Company has complied with this requirement.
36.3 Classification Of Financial Instruments
Group
Company
2012 2011 2012 2011
RM RM RM RM
Annual Report 2012
92
Financial assets
Available-for-sale financial assets
Other investment, at fair value 6,040 5,080 - -
Loans and receivables financial assets
Trade and other receivables 25,400,019 19,381,006 4,827,451 1,011,767
Deposits, bank and cash balances 21,126,551 22,891,142 366,264 925,813
46,526,570 42,272,148 5,193,715 1,937,580