NOTES TO FINANCIAL STATEMENTS
30 June 2016
Karin Technology Holdings Limited
Annual Report 2016
118
36. 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
ended 30 June 2016 and 2015.
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
2016
2015
HK$’000
HK$’000
Interest-bearing bank and other borrowings other
than finance lease payables
143,546
143,019
Finance lease payables
463
623
144,009
143,642
Total equity
677,398
666,488
Gearing ratio
0.21
0.22
37. APPROVAL OF THE FINANCIAL STATEMENTS
The financial statements were approved and authorised for issue by the board of directors on 23 September 2016.
