Singapore Airlines 2016 Annual Report Download - page 210

Notes to the Financial Statements
31 March 2016
39 Capital Management (in $ million)
The primary objective of the management of the Company’s capital structure is to maintain an eicient mix of debt and equity in order to achieve
a low cost of capital, while taking into account the desirability of retaining financial flexibility to pursue business opportunities and adequate
access to liquidity to mitigate the eect of unforeseen events on cash flows.
The Directors regularly review the Company’s capital structure and make adjustments to reflect economic conditions, business strategies and
future commitments.
The Group monitors capital using a gearing ratio, which is total debt divided by total capital.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.
During the financial year ended 31 March 2016, no significant changes were made in the objectives, policies or processes relating to the
management of the Company’s capital structure.
The Group
31 March
The Company
31 March
2016 2015 2016 2015
Notes payable 1,000.0 1,300.0 1,000.0 1,300.0
Finance lease commitments 44.4 99.3 – –
Loans 303.1 340.2 – –
Total debt 1,347.5 1,739.5 1,000.0 1,300.0
Share capital 1,856.1 1,856.1 1,856.1 1,856.1
Reserves 10,898.6 10,607.5 10,152.1 9,723.2
Total capital 12,754.7 12,463.6 12,008.2 11,579.3
Gearing ratio (times) 0.11 0.14 0.08 0.11
40 Related Party Transactions (in $ million)
For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly,
to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group
and the party are subject to common control. Related parties may be individuals or other entities.
Key Management Personnel of the Company are those persons having the authority and responsibility for planning, directing and controlling
the activities of the Company. The Group considers the Directors, Chief Executive Oicer and Executive Vice Presidents of the Company to be
Key Management Personnel of the Company.
In addition to the related party information disclosed elsewhere in the financial statements, these were the following significant related party
transactions which were carried out in the normal course of business during the financial year:
The Group
FY2015/16 FY2014/15
Purchases of services from associated companies 121.8 78.7
Services rendered to associated companies (108.2) (83.6)
Purchases of services from joint venture companies 0.7 –
Services rendered to joint venture companies (37.0) (20.7)
Purchases of services from related parties 1,187.8 1,223.0
Professional fees paid to a firm of which a Director is a member 1.5 1.5
Singapore Airlines208
FINANCIAL