MKH Berhad 235 45. FAIR VALUE HIERARCHY (CONT’D) Fair value reconciliation of biological assets measured at level 3 are as follows: The Group 2021 2020 RM RM Biological assets At beginning of year 4,233,267 5,181,734 Changes in fair value 1,637,252 (913,440) Effect of movements in exchange rate 306,507 (35,027) At end of year 6,177,026 4,233,267 Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. Transfer between Level 1 and 2 fair value There is no transfer between Level 1 and 2 fair values during the financial year. 46. CAPITAL MANAGEMENT The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratio in order to sustain future development of the businesses so that it can continue to maximise returns for shareholders and benefits for other stakeholders. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or to adjust capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or repay existing borrowings. No changes were made in the objectives, policies and processes during the financial years ended 30 September 2021 and 30 September 2020. Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
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