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Annual Report 2013 LifeBrandz Ltd
Notes to the Financial Statements
31 July 2013
32. Capital management
The primary objective of the Group’s capital management is to safeguard the Group’s ability to continue as a going
concern and to maintain a strong credit rating and healthy capital ratios 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 years
ended 31 July 2013 and 31 July 2012.
The Group monitors capital maintenance regularly, using a gearing ratio. The Group aims to keep the capital proportion
at a minimal level as group revenues are generated mostly on cash and credit card settlement. The Group includes within
net debt, trade and other payables and accruals, bill payables, hire-purchase liabilities, loans and borrowings, less cash
and cash equivalents. Capital includes equity attributable to owners of the Company. The Group’s policy is to keep the
gearing ratio below 50%. As at the end of the reporting period, the Group does not have any fnancial covenants to meet.
Group
2013 2012
$’000 $’000
Trade and other payables (Note 21) 4,870 4,398
Finance lease (Note 22) 2 6
Loans and borrowings (Note 23) 500 –
Less: Cash and cash equivalents (Note 20) (1,227) (1,742)
Net debt 4,145 2,662
Equity attributable to equity holders of the Company 6,849 3,635
Capital and net debt 10,994 6,297
Gearing ratio 38% 42%
33. Authorisation of financial statements
The fnancial statements for the fnancial year ended 31 July 2013 were authorised for issue in accordance with
a resolution of the directors on 29 October 2013.