CAPITAL MANAGEMENT. The primary objective of the Company’s capital management is to ensure that it has an appropriate financial structure and preserves the ability to continue its business as a going concern. According to the statement of financial position as at December 31, 2018, the group of Company's debt-to-equity ratio was 0.47:1 (as at December 31, 2017 0.51:1) and the Company’s debt-to-equity ratio was 0.35:1 (as at December 31, 2017 0.41:1)
CAPITAL MANAGEMENT. Party B shall manage and control all funds of Party A. Party A shall open or appoint a management account for its funds (“Management Account”) and Party B shall be responsible for and have the right in deciding the inward and outward remittance of its funds. The seals affixed to such account shall be that of the person appointed and confirmed by Party B. As of the day when this Agreement comes into effect, all cashes of Party A, including but not limited to revenues from sales, existing working capitals, collecting of receivables, and all payables and operating expenses, employees’ salaries and compensations and assets acquisition, must be saved and transacted in this Management Account.
CAPITAL MANAGEMENT. For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. As at 31st March, 2022, the Company has only one class of equity shares and has no long term debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for the re-investment into business based on its long term financial plans.
CAPITAL MANAGEMENT. The primary objective of Sovello’s capital management is the sustainability of the financial flexibility necessary for the Company’s long-term growth. Sovello is still going through a phase of strong growth and development. This involves extensive investment, which the Company must finance. Sovello meets the resulting financing risks with a solid capital structure encompassing equity, the shareholders’ and bank loans and the applicable portions of the financial assistance from the government. Short-term liquidity management is based on a rolling planning horizon of twelve months. The table below shows the balance sheet total, the equity in absolute figures and in per cent of the balance sheet total, and the net financial liabilities (financial liabilities minus cash and cash equivalents): (In thousands of EUR) Dec 31, 08 Dec 31, 07 Balance sheet total 467,145 380,179 Equity 107,796 91,168 Equity in per cent of balance sheet total 23.1 24.0 Net indebtedness 247,527 161,953 Annex 1.5 / 28 The loan agreement made in 2007 with the banking syndicate led by Deutsche Bank has been revised by the supplementary agreement of September 1, 2008. The syndicated loan agreement deals primarily with the continuation of the existing financing arrangements and the extending of the syndicated financing for the investment in the Company’s third production line at Bitterfeld-Wolfen. The financing now includes an additional loan of EUR 60 million of which EUR 35 million has been drawn. The tranches of the original syndicated loan agreement continue to be available on the original terms, except that interim financing of investment grant receivables was raised from EUR 30 million to EUR 45 million and the working capital loan was reduced from EUR 22 million to EUR 20 million. Drawings on the investment-grant interim financing line amounted at the reporting date to EUR 33.5 million. There were no drawings on the working capital loan. The syndicated loan agreement requires Sovello to achieve certain financial ratios. It also provides for compulsory unscheduled repayments if certain events occur, such as certain sales transactions, or if a third party acquires more than 50% of Sovello AG’s shares without the prior approval of the banks. Refer also to Note 4.12. Subsequent events.
CAPITAL MANAGEMENT. The Board of Directors’ policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board monitors the return on capital, which the Group defines as result from operating activities divided by total shareholders’ equity, excluding non-controlling interests and also monitors the level of dividends to ordinary shareholders.
CAPITAL MANAGEMENT. The Company defines capital that it manages as shareholders' equity that is expected to be realized in cash. The Company raises capital through private share offerings and related party loans and advances. Capital is managed in a manner consistent with the risk criteria and policies provided by the board of directors and followed by management. All sources of financing and major expenditures are analyzed by management and approved by the board of directors. The Company’s primary objectives when managing capital is to safeguard and maintain the Company’s financial resources for continued operations and to fund programs to further advance their hydro power technology. The Company is meeting its objective of managing capital through detailed review and the preparation of short-term and long-term cash flow analysis to maintain sufficient resources. HYDRO POWER TECHNOLOGIES INC. NOTES TO THE FINANCIAL STATEMENTS FOR THE QUARTERS ENDED DECEMBER 31, 2019 and 2018 (Expressed in Canadian dollars)
CAPITAL MANAGEMENT. 5.1 The capital required for the business of the LLP shall be contributed by the partners as per their mutual convenience irrespective of the extent of their shares.
5.2 The LLP business shall be carried on by all the Designated Partners as Working Partners themselves faithfully, diligently, honestly, lawfully and in the best interests of the firm and in accordance with the policy and decisions taken by the Designated Partners from time to time.
CAPITAL MANAGEMENT. Capital requirements are established by the Credit Union Act (the “Act”) and Principal Regulations regulated by the Credit Union Deposit Guarantee Corporation (the “Corporation”). Under legislation, the Credit Union is required to measure capital adequacy in accordance with instructions for determining risk-adjusted capital and risk-weighted assets ("RWA") including off- balance sheet commitments. Based on the prescribed risk of each type of asset, a weighting of 0% to 150% is assigned. The ratio of capital to RWA is calculated and compared to the requirement set out in the legislation and by the Corporation. Legislative requirements stipulate that the Credit Union maintain a minimum capital of the greater of 8% of RWA and 4% of total assets. The Credit Union is also required to maintain a Supervisory Capital Buffer equal to 2.5% of its RWA. The Credit Union also maintains an internal capital buffer, in addition to the legislative and supervisory buffers, of 2% of its risk weighted assets. Tier 1 capital is defined as the Credit Union's primary capital and comprises share capital and retained earnings while tier 2 is secondary capital and falls short of meeting tier 1 requirements for permanence or freedom from mandatory charge. Tier 2 capital of the Credit Union consists of deferred income taxes payable and the collective allowance for member loans. The primary capital policies and procedures include the following:
a) Adhere to legislative capital requirements as minimum benchmarks (i.e. growth, operations, enterprise risk);
b) Co-ordinate strategic risk management and capital management;
c) Develop financial performance targets/budgets/goals;
d) Administer a patronage program that is consistent with capital requirements;
e) Administer an employee incentive program that is consistent with capital requirements;
f) Develop a planned growth strategy that is coordinated with capital growth; and
g) Update plans that consider the strengths, weaknesses, opportunities and threats to the Credit Union.
CAPITAL MANAGEMENT. Manager will provide assistance in evaluating capital expenditures in connection with the Facilities. Such assistance will include pro forma modeling, return on investment calculations, bench marking and assumption testing. Manager will also provide through one or more of its Affiliates a full range of support in pro forma preparation and analysis. The Manager will work with Owner to establish annual capital budgets that are consistent with the Five-Year Capital Plan set forth as “Exhibit F” to that certain Contribution and Sale Agreement by and among Metropolitan Health Corporation and its affiliates, Metro Health Holdings, LLC and its affiliates, and CHS/Community Health Systems, Inc. (the “Contribution Agreement”) and any other Owner-approved strategic capital projects that may be outside of the Five Year Capital Plan set forth at “Exhibit F” to the Contribution Agreement.
CAPITAL MANAGEMENT. The Board of Directors policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Board of Directors monitors the return on equity, which the Company defines as net profit divided by total shareholders’ equity. The Board of Directors also monitors the level of dividends to ordinary shareholders. There were no changes in the Company’s approach to capital management during the year. The Company is not subject to externally imposed capital requirements. The Board of Directors believes that the fair values of financial assets and liabilities are not significantly different from their carrying amounts at the end of the reporting date.
