119
ANNUAL REPORT 2014/2015
NOTES TO THE FINANCIAL STATEMENTS
29 DERIVATIVE FINANCIAL INSTRUMENTS (CONT’)
The fair values of derivative financial liabilities are determined by reference to broker quotes at the
measurement date. The different levels have been defined as follows:
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
•
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
•
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
30 SHARE CAPITAL
THE GROUP & THE COMPANY
Number of ordinary shares
$’000
2015
2014
2015
2014
Issued and fully paid:
Beginning and end of financial year
863,833,482
863,833,482
144,556
144,556
The ordinary shares of no par value carry no right to fixed income and are fully paid-up.
Capital management
The primary objective of the Group’s capital management is to have a strong capital base and a good rating
to maintain investor, creditor and market confidence and to sustain future development of the business. The
management does not set a target level of gearing but uses capital opportunistically to support its business
and to add value for shareholders. The key discipline adopted is to widen the margin between the return on
capital employed and the cost of that capital. The Group manages its capital to ensure entities in the Group
will be able to continue as going concerns while maximising the return to shareholders through optimisation
of the debt and equity balance. The Group actively reviews its capital structure and considers the cost of
capital and the risks associated with each class of capital. The Group balances its overall capital structure
through the payment of dividends, share buy-back, new share issues as well as the issue of new debt or the
redemption of existing debt.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
