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AEMULUS HOLDINGS BERHAD
TA R G E T I N G T H E B U L L’ S E Y E
27. FINANCIAL INSTRUMENTS (Cont’d)
27.3 Fair value information
GROUP AND COMPANY
Other than the other investment disclosed below, the carrying amounts of the financial assets and financial liabilities
of the Group and of the Company as at the end of the reporting period approximate their fair values due to their
short term nature.
The carrying amounts of the non-current portion of trade receivables are reasonable approximation of their fair
values due to the insignificant impact of discounting.
27.3.1 Fair value hierarchy
The table below analyses financial instruments that are measured subsequent to initial recognition at fair
value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable (refer to Note
2.2 to the financial statements for definition of Level 1 to 3 fair value hierarchy).
Level 1
Level 2
Level 3
Total
RM
RM
RM
RM
GROUP
30.9.16
Available-for-sale financial assets
- Other investment
22,849,433
–
– 22,849,433
30.9.15
Available-for-sale financial assets
- Other investment
646,604
–
–
646,604
COMPANY
30.9.16
Available-for-sale financial assets
- Other investment
14,880,333
–
– 14,880,333
The other investment represents investment in unit trusts and it is carried at fair value by reference to its
quoted closing bid price at the end of the reporting period.
28. CAPITAL MANAGEMENT
The primary objective of the Group’s capital management policy is to maintain a strong capital base to support its
businesses and maximise shareholders’ value.
The Group manages its capital structure and make adjustments to it in the light of changes in economic conditions
or expansion of the Group. The Group may adjust the capital structure by issuing new shares, returning capital to
shareholders or adjusting the amount of dividends to be paid to shareholders or sell assets to reduce debts. A bank of
the subsidiary has imposed a debt covenant whereby the subsidiary’s gearing ratio shall not exceed
1
(30.9.15: 1). The
subsidiary has not breached this covenant as it is in a net cash position.
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016