Rangatira Investments Annual Report 2021 - Report - Page 59
Ra n g a t i ra An n u a l Re p ort 2021
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2021
Note 21 Related Party Transactions
Transactions and Balances with Key Management Personnel
The transactions and balances below are those between the Group and key management personnel.
Key management personnel expenses comprised :
Short-term employee benefits
Key management personnel consisted of the chief executives and senior employees of the parent and subsidiary companies.
Directors’ fees paid to directors of Rangatira Ltd and its subsidiaries during the year were $462,000 (2020 : $492,000)
Note 22 Financial Instruments
(a) Capital Risk Management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance.
Financial and capital management involves ensuring that the Group income, expenses and statement of financial position are managed
in such a way as to maximise returns to investors. This includes:
• Ensuring that cash flows from dividends and other income are utilised as they come available. This may be by way of capital
expenditure for expansion of the business, or simply by debt repayments or by ensuring that cash balances are earning competitive
• Ensuring that borrowings are used prudently, minimising interest costs, while at the same time making appropriate decisions about
the trade-off between the cost of borrowing and the potential return from investment opportunities.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 16, cash and cash equivalents and
equity attributable to equity holders of the Parent, comprising issued capital, retained earnings and reserves.
Some of the Group’s subsidiaries are subject to externally imposed bank covenants as part of their secured bank loan facilities and
Bio-Strategy breached its covenants under the previous financing arrangements which have been superseded.