FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
118
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
34 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)
(c) Liquidity risk (Cont’d)
Non-derivative financial assets (Cont’d)
Weighted
average effective
interest rate
Less than
1 year
$’000
Between
2 and 5 years
$’000
After
5 years
$’000
Adjustment
$’000
Total
$’000
Company
At 31 December 2015
Non-interest bearing
-
8,464
-
4,132
-
12,596
8,464
-
4,132
-
12,596
At 31 December 2014
Non-interest bearing
-
7,716
-
4,372
-
12,088
7,716
-
4,372
-
12,088
(d) Capital risk
The Group’s objectives when managing capital are:
(i) to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for
shareholders and benefits for other stakeholders; and
(ii) to provide an adequate return to shareholders by pricing products and services commensurately with the level
of risk.
If the need for financing arises, the Group will monitor and manage the capital structure and make adjustments
to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order
to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,
return capital to shareholders, issue new shares or sell assets to reduce debt.
Certain subsidiaries of the Group are required by the relevant local regulations to contribute to and maintain a
non-distributable statutory reserve fund whose utilisation is subject to approval by the relevant local authorities.
The Group and the Company are in compliance with all externally imposed capital requirements for the financial
year ended 31 December 2015 and 2014.
