NOTES TO FINANCIAL STATEMENTS
30 June 2015
Karin Technology Holdings Limited
Annual Report 2015
114
34. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(continued)
(e)
CAPITAL MANAGEMENT
The primary objectives of the Group’s capital management are to safeguard the Group’s ability to continue
as a going concern and to maintain healthy capital ratios in order to support its business and maximise
shareholders’ value.
The Group manages its capital structure and makes adjustments to it in light of changes in economic
conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure,
the Group may adjust the dividend payment to shareholders, return capital to shareholders, repurchase its
own shares or issue new shares. The Group is not subject to any externally imposed capital requirements.
No changes were made in the objectives, policies or processes for managing capital during the years
FOEFE +VOF
BOE
The Group monitors its capital using a gearing ratio, which is interest-bearing bank and other borrowings
and finance lease payables divided by the total equity. The Group’s policy is to keep the gearing ratio at
a reasonable level. The gearing ratios as at the end of the reporting periods were as follows:
Group
2015
HK$’000
HK$’000
Interest-bearing bank and other borrowings
other than finance lease payables
143,019
170,325
Finance lease payables
623
________
143,642
Total equity
666,488
591,170
________
________
Gearing ratio
0.22
0.29
________
________
35. APPROVAL OF THE FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the board of directors on 29 September 2015.
