FORGING AHEAD - Tradewinds Plantation Berhad

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FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
36. FINANCIAL INSTRUMENTS
(a) Capital management
The primary objective of the Group’s capital management is to ensure that the Group maintains healthy capital ratios
in order to support its business operations and maximises shareholders 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 financial
years ended 31 December 2010 and 31 December 2009.
The Group monitors capital using a gearing ratio which is the amount of borrowings (Note 21 to the financial
statements) divided by equity attributable to owners of the parent. The Group’s policy is to keep the gearing ratio within
manageable levels. At the end of the reporting period, the Group’s gearing ratio is 0.57 times (2009: 0.68 times).
With respect to the banking facilities with certain financial institutions and the Sukuk Ijarah and Murabahah CP/MTN
facilities, the Group is committed to maintain a gearing ratio of not more than 1.75 times calculated by dividing the
amount of borrowings (Note 21 to the financial statements) over equity attributable to owners of the parent.
(b) Financial instruments
Certain comparative figures have not been presented for the financial year ended 31 December 2009 by virtue of the
exemption given in paragraph 44AA of FRS 7.
(i) Categories of financial instruments
Loans and Available-
Group receivables for-sale Total
2010 RM’000 RM’000 RM’000
Financial assets
Other investments - 1,900 1,900
Trade and other receivables 137,360 - 137,360
Cash and cash equivalents 78,345 - 78,345
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
215,705 1,900 217,605