Sustainability and Governance Report
Notes to the FINANCIAL STATEMENTS
[No
29.
Fair value of financial instruments (cont'd)
Categories of financial assets and financial liabilities
Set out below are the carrying amounts of the Group's and the Company's financial assets and financial liabilities that are carried on the balance sheets:
Assets
Cash and bank balances (Note 14)
Trade receivables (Note 12)
Other receivables (Note 13)
Total financial assets carried at amortised cost
Liabilities
Trade and other payables (Note 21)
Amounts due to directors
Bills payable (Note 22)
Bank borrowings (Note 23)
Lease liabilities (Note 19)
Total financial liabilities carried at amortised cost
00
Group
Company
2020
$'000
2019
$'000
2020
$'000
2019
$'000
7,094
3,019
3,278
5,794
4,732
2,577
4,940
1,802
2,133
777
2,284
13,391
13,103
7,138
4,863
2,365
645
4,265
94
168
439
645
439
3,370
3,209
2,373
4,022
1,634
2
10,387
11,935
741
607
30. Capital management
Capital includes debt and equity items as disclosed in the table below.
The primary objective of the Group's capital management is to ensure that it maintains a strong credit rating in order to support its business and maximise shareholder value.
The Group manages its capital structure and makes adjustments to it, in 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 or issue new shares. No changes were made in the objectives, policies or processes during the
financial years ended 31 March 2020 and 31 March 2019.
An overseas subsidiary in Taiwan appropriates 10% of its net profit after tax according to the subsidiary's Articles of Incorporation as legal reserve. Such appropriations are
proposed by the directors for approval by shareholders in the next financial year and given effect in the financial statements of that year. The legal reserve shall be appropriated
each year until the accumulated reserve equals the paid-up capital of the subsidiary. This reserve can only be used to offset losses of the subsidiary. When the reserve has
reached 50% of the share capital of the subsidiary, up to 50% of the legal reserve may be capitalised. The reserve is not available for dividend distribution. This internally
imposed capital requirement has been complied with by the abovementioned subsidiary for the financial years ended 31 March 2020 and 31 March 2019.
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