FY 2011 Annual Report - Sheng Siong

Sheng Siong Annual Report 2011
Notes to the Financial Statements
11 Share capital (Continued)
Capital management
The Group defines capital as share capital and accumulated profits.
The Group’s objective when managing capital is to maintain an efficient capital structure so as to maximise
shareholder value. In order to maintain or achieve an efficient capital structure, the Group may adjust the
amount of dividend payment, return capital to shareholders, issue new shares, obtain new borrowings or sell
assets to reduce borrowings.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of
borrowings and the advantages and security afforded by a sound capital position.
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.
12 Merger reserve
Merger reserve represents the difference between the purchase consideration of $78.2 million paid by the
Company for the acquisition of the entities under common control which subsequently became subsidiaries of
the Company and the aggregated share capital of the combining entities.
13 Deferred tax – Group
Movements in deferred tax liabilities of the Group during the years are as follows:
At
1 January
2010
Recognised
in profit
or loss
(note 19)
At 31
December
2010
Recognised
in profit
or loss
(note 19)
At 31
December
2011
$’000 $’000 $’000 $’000 $’000
Property, plant and equipment 729 (121) 608 467 1,075
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