Asia-Pacific Strategic Investments Limited - Annual Report 2021

Notes to the Financial Statements For the financial year ended 30 June 2021

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Financial risk management (continued)

(c)

Liquidity risk (continued)

The table below analyses non-derivative financial liabilities of the Group into relevant maturity groupings based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Less than 1 year

Between 1 and 2 years

Between 2 and 5 years

S$’000

S$’000

S$’000

Group 2021 Borrowings

2,170 5,492 7,662

2,189

9,430

-

-

Trade and other payables

2,189

9,430

2020 Borrowings

2,472 4,931 7,403

2,693

2,637

Trade and other payables

-

-

2,693

2,637

Company 2021 Borrowings

1,406

1,329

2,630

492

-

-

Trade and other payables

1,898

1,329

2,630

2020 Borrowings

452 157 609

2,635

2,630

Trade and other payables

-

-

2,635

2,630

(d)

Capital risk

The Group’s objectives when managing 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 shareholder value. In order to maintain or achieve an optimal capital structure, the Group may adjust the amount of dividend payment, return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings. Management monitors capital based on a gearing ratio. The Group’s and the Company’s strategies, which were unchanged since the financial year ended 30 June 2014, are to maintain gearing ratios within 30% to 40%. The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as borrowings plus trade and other payables less cash and cash equivalents. Total capital is calculated as equity plus net debt.

ASIA-PACIFIC STRATEGIC INVESTMENTS LIMITED

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