Download PDF - ChartNexus

More documents

Recommendations

Info

annual report | 2012 Gunung Capital Berhad (330171-P) 94 NOTES TO THE FINANCIAL STATEMENTS (cont’d) 31 DECEMBER 2012 39 FAIR VALUE OF FINANCIAL INSTRUMENTS (cont’d) Financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value The following are classes of financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value: Note Trade receivables 10 Other receivables 11 Amount owing by / (to) subsidiaries 12 Trade payables 20 Other payables 21 Finance lease and hire purchase payables 17 Shareholder’s advance 18 Bank borrowings 22 The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values due to their relatively short-term nature. Finance Lease and Hire Purchase Payables The fair values of these financial instruments are determined by discounting the relevant cash flows using interest rates of similar instruments as at the end the reporting period. Group Company Carrying amount 2012 RM Fair value 2012 RM Carrying amount 2011 RM Fair value 2012 RM Financial liabilities Finance lease and hire purchase payables 41,558,083 44,358,722 53,421,325 53,691,608 Unquoted Equity Instruments It is not practical to estimate the fair value of the Group’s investment in unquoted shares because of the lack of quoted market prices and the variability to estimate fair value. However, the management believes that the carrying amount represents the recoverable value. Financial Guarantees Fair value is determined based on probability weighted discounted cash flow method. The probability has been estimated and assigned for the following key assumptions: (i) The likelihood of the guaranteed party defaulting within the guaranteed period; (ii) The exposure on the portion that is not expected to be recovered due to the guaranteed party’s default; and (iii) The estimated loss exposure if the party guaranteed were to default. Fair Value Hierarchy As at 31 December 2012, there were no financial instruments carried at fair value.
NOTES TO THE FINANCIAL STATEMENTS (cont’d) 31 DECEMBER 2012 40 CAPITAL MANAGEMENT The Group considers its capital to be comprised of its ordinary share capital, retained earnings and distributable reserves. The Group’s objectives when managing its capital are to safeguard the Group’s ability to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholders value. In order achieve this objective, the Group seeks to balance risk and returns at an acceptable level and also to maintain a sufficient funding base to enable the Group to meet its working capital and strategic needs. Where necessary, adjustments to the amount of dividends paid to shareholders or the issuance of new shares may be considered. There have been no significant changes to the Group’s capital management objectives, policies and processes in the year nor has there been any change in what the Group consider to be its capital. The Group manages its capital based on debt-to-equity ratio. The debt-to-equity ratio is calculated as net debt divided by total equity attributable to the owners of the parent. Net debt is calculated as borrowings plus trade and other payables less cash and cash equivalents. The debt-to-equity ratio of the Group at the end of the reporting period is as follows: 2012 RM Group Finance lease and hire purchase payables 41,558,083 53,421,325 Bank borrowings - 3,943,546 Trade payables 1,568,010 2,363,185 Other payables 11,198,955 32,317,554 Shareholders’ advance 1,726,811 6,231,949 2011 RM 56,051,859 98,277,559 Less: Cash and bank balances (17,909,658) (19,241,908) Cash and bank balances, attributable to disposal group, net of financial liabilities - (26,819) Net debt 38,142,201 79,008,832 Total equity attributable to the owners of the parent 63,329,856 43,995,678 Debt-to-equity ratio 0.60 1.80 Gunung Capital Berhad (330171-P) 95 annual report | 2012
Page 2 and 3:
(Source: CEO of Gunung Capital Bhd,
Page 4 and 5:
annual report | 2012 Gunung Capital
Page 6 and 7:
Page 8 and 9:
Page 10 and 11:
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
Page 20 and 21:
Page 22 and 23:
Page 24 and 25:
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47: annual report | 2012 Gunung Capital
Page 110 and 111: Notes:- 1. A member of the Company,
show all

Download PDF - ChartNexus

Create successful ePaper yourself

Delete template?

Save as template?