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ASX Additional Information

Note
Carrying
amount
2008
Fair
value
2008
Carrying
amount
2007
Fair
value
2007
$’000 $’000 $’000 $’000
Parent Entity
Cash and cash equivalents
Receivable from controlled entities
Other receivables
Loans provided under the employee share plan
Available-for-sale financial assets
Payables
10
11
11
11
15
21
176
191,725
357
349
10,610
(766)
176
191,725
357
349
10,610
(766)
186
344,009
254
421
13,692
(721)
186
344,009
254
421
13,692
(721)
202,451 202,451 357,841 357,841
Unrecognised (losses)/gains — —

Estimation of fair values

The following summarises the major methods and assumptions used in estimating the fair values of financial instruments reflected in the table
above:

Quoted investments

Fair value is determined by reference to the securities exchange quoted market prices at close of business on the balance sheet date, without
any deduction for transaction costs.

Derivatives

Bank mark-to-market valuations have been used to determine the fair value of interest rate swaps and forward exchange contracts. These have
been back tested against valuations generated by the Group’s treasury system pricing module, using market quoted data as at balance date.
The system uses discounted cash flow techniques to value financial instruments.

Interest bearing loans and borrowings

Fair value is calculated based on discounted expected future principal and interest cash flows.

Finance lease liabilities

The fair value is estimated as the present value of future cash flows, discounted at market interest rates for similar lease arrangements. The estimated
fair value reflects the assessed current interest rate for a similar lease where this rate has been determined to be different from the rate charged.

Trade and other receivables/payables

For receivables/payables with a remaining life of less than one year, the notional amount is deemed to reflect the fair value. All other receivables/
payables are discounted to determine the fair value where an appropriate rate of interest is not received/charged in respect of the amount.

Interest rates used for determining fair value

The Group uses a bank quoted interest rate swap curve as of 30 June 2008 plus assessed risk factors/credit spread to discount financial
instruments.

Capital management

The Group manages its capital with the objective of maintaining a strong capital base so as to maintain investor, creditor and market confidence
and to have the capacity to take advantage of opportunities that will enhance the existing businesses and enable future growth and expansion.
The Board monitors the return on capital, which the Group defines as operating profit after income tax divided by the of total shareholders’
equity and long term debt. The Board also monitors the Group’s gearing ratio, being net debt divided by total equity.

It is recognised that the Group operates in business segments in which operating results may be subject to volatility and the Board of Directors
continuously reviews the capital structure to ensure sufficient:

• surplus funding capacity is available;
• funds are available for capital expenditure and to implement longer term business development strategies; and
• funds are available to maintain appropriate dividend levels.
There were no changes in the Group’s approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.