Rangatira Annual Report 2023 - Flipbook - Page 64
64
R anga tira Annua l Rep or t 2 0 2 3
Rangatira Group
Notes to the Consolidated
Financial Statements (continued)
For the year ended 31 March 2023
Note 23 Related Party Transactions
TRANSACTIONS AND BALANCES WITH ASSOCIATES AND KEY MANAGEMENT PERSONNEL
The transactions and balances below are those between the Group and key management personnel.
2023
$000
2022
$000
4,769
4,099
4,769
4,099
Expenses
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 $665,000 (2022 : $676,000 - restated to
include directors' fees paid to group directors on subsidiary boards).
Note 24 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
interest rates.
• 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 14, 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
both Boulcott and Bio-Strategy breached its covenant although BNZ issued a waiver for those breaches.
(b) Foreign Currency Risk Management
The Group’s risk management practices remain consistent with the prior year. The Group undertakes certain transactions denominated
in foreign currencies, hence exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved
policy parameters utilising forward foreign exchange contracts.
All foreign currency transactions during the financial year are brought to account using the exchange rate in effect at the date of the
transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at reporting date. Nonmonetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at
the date when the fair value was determined. Exchange differences are recognised in the profit or loss in the period in which they arise
except for exchange differences on the Group’s foreign operations assets and liabilities which are recognised in the Group’s foreign
currency translation reserve.