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DYNA-MAC HOLDINGS LTD.
2016 ANNUAL REPORT
104
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2016
31.
FINANCIAL RISK MANAGEMENT
(CONT’D)
(d) Capital risk (Cont’d)
Management monitors capital based on gearing ratio. The gearing ratio is calculated as total debt
divided by total capital. Total debt refers to total borrowings, while total capital is calculated as total
equity plus total debt.
The Group’s strategy which remains unchanged during the financial years ended 31 December 2016
and 2015 are to maintain a gearing ratio of not exceeding 50%.
The Group and the Company are in compliance with all externally imposed capital requirements as
at 31 December 2016.
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
Total debt
35,138
83,902
–
49,532
Total equity
166,672
180,506
142,344
144,146
Total capital
201,810
264,408
142,344
193,678
Gearing ratio
17%
32%
–
26%
(e) Fair value measurements
The following table presents assets and liabilities measured at fair value and classified by level of the
following fair value measurement hierarchy:
(i)
quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
(ii) 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 2); and
(iii) inputs for the asset or liability that are not based on observable market data (unobservable
inputs) (Level 3).
Level 2
$’000
Group
2016
Liabilities
Derivative financial instruments
–
2015
Liabilities
Derivative financial instruments
1,924
The fair value of currency forward contracts is determined using quoted forward currency rates
at the balance sheet date. These investments are classified as Level 2.