143
INDOFOOD AGRI RESOURCES LTD
ANNUAL REPORT 2014
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
34. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)
(e)
Liquidity risk (cont’d)
One year
or less
One to
five years
More than
5 years
Total
Rp million Rp million Rp million Rp million
Company
As at 31 December 2014
Financial liabilities:
Non
-
current interest
-
bearing loans and
borrowings
20,122
939,854
–
959,976
Trade and other payables and accruals
14,272
–
–
14,272
Total undiscounted financial liabilities
34,394
939,854
–
974,248
As at 31 December 2013
Financial liabilities:
Non
-
current interest
-
bearing loans and
borrowings
17,712
935,315
–
953,027
Trade and other payables and accruals
15,729
–
–
15,729
Total undiscounted financial liabilities
33,441
935,315
–
968,756
35. CAPITAL MANAGEMENT
The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to
support its business and maximize shareholder value.
Certain subsidiary companies are required to comply with loan covenants imposed by their lenders, such as maintaining
the level of existing share capital. This externally imposed requirement has been complied with by the relevant subsidiary
companies for the financial year ended 31 December 2014 and 2013. Additionally, certain subsidiary companies in
Indonesia are required by the Corporate Law to maintain a non
-
distributable reserve until it reaches 20% of the issued
and paid share capital. This externally imposed capital requirement will be complied by the relevant subsidiary companies
by their next annual general meeting.
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 December 2014 and 2013.
