Berry Street Web Docs Financial Report 2011 | Page 36
BERRY STREET VICTORIA INC.
ABN 24 719 196 762
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2011
NOTE 21: CAPITAL MANAGEMENT
Management controls the capital of the entity in order to ensure that adequate cash flows are generated to
fund its programs and that returns from investments are maximized. The finance committee enusures that
the overall risk management strategy is in line with this objective.
The finance committee operates under policies approved by the Board of Directors. Risk management
policies are approved and reviewed by the Board on a regular basis. These include credit risk policies and
future cash flow requirements.
The entity’s capital consists of financial liabilities, supported by financial assets.
Management effectively manages the entity’s capital by assessing the entity’s financial risk and responding
to changes in these risks and in the market. These responses may include the consideration of debt levels.
There have been no changes to the strategy adopted by management to control the capital of the entity
since the previous year. The strategy of the entity is to maintain a gearing ratio below 10%.
The gearing ratios for the years 30 June 2011 and 30 June 2010 are as follows:
Note
11
4
2011
$
2010
$
5,112,068
(2,994,504)
5,361,435
(3,030,456)
Net Debt
Total equity (reserves + retained earnings)
2,117,564
35,081,211
2,330,979
33,666,864
Total Capital
37,198,775
35,997,843
Total borrowings
Less cash and cash equivalents
Gearing Ratio
5.7%
6.5%
NOTE 22: SUBSEQUENT EVENTS
Since the end of the reporting date the association is not aware of any events that may have a bearing on
the presentation and disclosure of the financial statements as