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Masterskill Education Group Berhad / Annual Report 2012
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NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
22. FINANCIAl INSTRumENTS (Cont’d)
22.9 Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been
defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
level 1 level 2 level 3 Total
Group and Company Rm’000 Rm’000 Rm’000 Rm’000
31 December 2012
Financial assets
Investment in quoted shares 10,102 – – 10,102
31 December 2011
Financial assets
Investment in quoted shares 10,210 – – 10,210
1 January 2011
Financial assets
Investment in quoted shares – – – –
23. CApITAl mANAGEmENT
The Group’s objectives when managing capital is to maintain a strong capital base and safeguard the Group’s ability to continue as
a going concern, so as to maintain investor, creditor and market confidence and to sustain future development of the business. The
Directors monitor and maintain an optimal debt-to-equity ratio that complies with debt covenants and regulatory requirements.
During 2012, the Group’s strategy, which was unchanged from 2011, was to maintain the debt-to-equity ratio at a manageable
level. The debt-to-equity ratios were as follows:
Group
31.12.2012 31.12.2011 1.1.2011
Rm’000 Rm’000 Rm’000
Total borrowings (Note 10) 68,265 54,176 45,488
Total equity 422,405 516,304 520,521
Debt-to-equity ratios 0.16 0.10 0.09
There were no changes in the Group’s approach to capital management during the financial year.