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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2013
MTQ Corporat ion Limi ted Annual Repor t 2012/13 120
34. FINANCIAL INSTRUMENTS (CONT’D)
Fair values of financial instruments (cont’d)
(b) Financial instruments that are not carried at fair value and whose carrying amount approximates fair value
Management has determined that the carrying amount of cash and cash equivalents (Note 18), trade and other
receivables (Notes 15 and 17), trade and other payables (Note 19) finance lease payable (Note 20), bank borrowings
(Note 21) and loans from a non-controlling shareholder of a subsidiary (Note 22) based on their notional amounts,
reasonably approximate their fair values either due to their short-term nature or that they are floating rate instruments
that are re-priced to market interest rates on or near the end of the reporting period.
(c) Financial instruments that are not carried at fair value and whose carrying amounts are not reasonable
approximation of fair value
The fair value of non-current amounts due from/(to) subsidiaries (Notes 15 and 19) are not determinable as the timing
of the future cash flows arising from the repayment cannot be estimated reliably.
35. HEDGE ACCOUNTING
Hedge of net investments in foreign operations
Included in loans at 31 March 2013 was a borrowing of AUD28,739,000, which has been designated as a hedge of the
net investment in the Neptune Group and is being used to hedge the Group’s exposure to foreign exchange risk on the
investment. Gains or losses on the retranslation of this borrowing are transferred to equity to offset any gains or losses on
translation of the net investments in the subsidiaries. There is no ineffectiveness in the year ended 31 March 2013.
Included in loans at 31 March 2012 was a borrowing of USD13,510,000, which had been designated as a hedge of the net
investment in the Premier Sea and Land Pte Ltd and was being used to hedge the Group’s exposure to foreign exchange
risk on the investment. Gains or losses on the retranslation of this borrowing were transferred to equity to offset any gains or
losses on translation of the net investments in the subsidiary. There was no ineffectiveness in the year ended 31 March 2012.
The loan was repaid on 9 April 2012.
36. CAPITAL MANAGEMENT
The primary objective of the Group’s capital management is to ensure that it maintains an appropriate capital structure in order
to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in the light of changes in economic conditions.
To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to
shareholders, issue new shares, buy back issued shares, obtain new borrowings or sell assets to reduce borrowings. No
changes were made in the objectives, policies or processes during the financial years ended 31 March 2013 and 31 March
2012.