131
MTQ CORPORATION LIMITED
NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
33. FINANCIAL INSTRUMENTS (CONT’D)
Fair values of assets and liabilities (cont’d)
(d)
Assets not carried at fair value but for which fair value is disclosed
Investment property
The valuation of investment property is based on comparable market transactions that consider sales of
similar properties within the vicinity that have been transacted in the open market, income approach and
replacement cost approach.
Company
2016
$’000
2015
$’000
Fair values measurements at the end of the
reporting period using
Fair values measurements at the end of
the reporting period using
Signifcant
observable
inputs other
than quoted
prices (Level 2)
Total
Carrying
amount
Signifcant
observable
inputs other
than quoted
prices (Level 2)
Total
Carrying
amount
Assets
Investment
Property
7,200
7,200
944
7,500
7,500
991
34. HEDGE ACCOUNTING
Hedge of net investments in foreign operations
Included in loans at 31 March 2016 was a borrowing of AUD15,000,000 (2015: AUD30,000,000), 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 subsidiary. There was
no ineffectiveness in the financial years ended 31 March 2016 and 31 March 2015.
35. 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 Groupmanages its capital structure andmakes 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, sell assets or reduce
borrowings. No changes were made in the objectives, policies or processes during the financial years ended 31
March 2016 and 31 March 2015.
The Group monitors capital using a gearing ratio, which is net debt divided by net capitalisation. The Group
includes within its net debt, bank borrowings and finance lease payable, less cash and cash equivalents. Net
capitalisation refers to net debt plus shareholders’ funds and non-controlling interests.
