Page 101 - Neal and Massy Holdings Annual Report 2012

99 forward focused
3 Financial Risk Management (continued)
3.1 Financial risk factors (continued)
c) Liquidity risk (continued)
More than Contractual Carrying
< 1 year 1 – 5 yrs 5 yrs cash flows amount
$ $ $ $ $
2011
Financial Liabilities:
Bank overdrafts and other
short term borrowings 4,616 - - 4,616 4,616
Other borrowings 322,885 994,188 565,766 1,882,839 1,413,239
Customers’ deposits 222,597 151 - 222,748 215,446
Trade payables 656,527 - - 656,527 656,527
Liabilities on insurance contracts 832,473 - - 832,473 832,473
2,039,098 994,339 565,766 3,599,203 3,122,301
3.2 Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to
provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the
cost of capital.
In order to maintain or adjust the capital structure, the Group may vary the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or sell assets to reduce debt.
The Group monitors capital on the basis of the gearing ratio. The ratio is calculated as net debt divided by total capital.
Net debt is calculated as total borrowings (current and non-current borrowings) less cash and cash equivalents. Total capital is
calculated as total equity as shown in the consolidated statement of financial position plus net debt.