31 FINANCIAL RISK MANAGEMENT
(CONT’D)
(d)
Capital Risk
(cont’d)
The Group and the Company monitor capital using a net-debt-to-equity ratio, which is net debt divided
by total equity. In general, the Group’s and the Company’s policy is to keep the ratio within 50%. The
Group and the Company include within net debt, borrowings, trade and other payables, less cash and
cash equivalents. Capital includes equity attributable to the equity holders of the Company.
Group
Company
2014
2013
2014
2013
US$’000
US$’000
US$’000
US$’000
Borrowings
–
128
–
–
Trade and other payables
25,503
32,788
5,459
10,902
Less: Cash and cash equivalents
(21,202)
(14,662)
(7,331)
(492)
Net debt/(cash)
4,301
18,254
(1,872)
10,410
Equity attributable to the equity
holders of the Company
60,083
44,792
61,618
52,200
Net-debt-to-equity ratio
7.2%
40.8%
N.M.
19.9%
32 FAIR VALUE FINANCIAL INSTRUMENTS
The carrying amounts of financial assets and liabilities with a maturity of less than 1 year, which include cash
and cash equivalents, borrowings, receivables and payables are assumed to approximate their fair values
due to their short-term maturities.
The carrying amount of non-current portion of loans to subsidiaries (Note 20) and non-current portion of other
payables (Note 24) to the financial statements are reasonable approximation of their fair value.
33 DIVIDENDS
For the financial year ended 31 December 2014, the directors of the Company propose a final tax-exempt
(one-tier) dividend of 0.525 Singapore cent per share to the shareholders (2013: 0.5 Singapore cent).
34 CONTINGENT LIABILITIES
Alleged Payroll Tax Avoidance in England and Wales
TWS has an ongoing issue relating to employment taxes which arose via a scheme in place prior to the
acquisition by the Group. Under the terms of the sale and purchase agreement between the previous owners
of TWS and GIHL, any potential liabilities that arise relating to employment taxes will be reimbursed by the
previous owners of TWS.
The directors are currently unable to quantify the potential tax liability for the Group in respect of this matter, in
the event that amounts are not recovered from the previous owner. Under the terms of the sale and purchase
agreement an amount was agreed to be held in escrow until the 6-month and 12-month anniversary of the
completion of the purchase. However, the previous owners have agreed to the funds remaining in escrow
until such time as the ongoing issue relating to employment taxes is resolved.
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
GLOBAL INVACOM GROUP LIMITED
ANNUAL REPORT 2014
98
