107 INFINIO GROUP LIMITED ANNUAL REPORT 2013
NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2013
28.
FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents financial instrument measured at fair value and classified as level 1 where quoted prices (unadjusted) are based in active markets for identical assets: Group and Company 2013 2012 S$’000 S$’000 Level 1 – Financial assets Available-for-sale financial assets – Equity securities
–
606
Total assets
–
606
The fair value of the available-for-sale financial assets is traded in active markets based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group and Company is the current bid price. These instruments are included in Level 1. The carrying amounts of trade receivables, other receivables, cash and cash equivalents, trade payables, other payables, and loans payable are reasonable approximation of fair values due to their short-term nature. 29.
CAPITAL MANAGEMENT Capital includes debt and equity items as disclosed in the table below. The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern and to maintain a 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 shareholder, issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings. The Group’s overall strategy remained unchanged from 2012. Management monitors capital based on a gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total current liabilities less cash and cash equivalents. Total capital is calculated as equity plus net debt or less net cash.