FY 2011 Annual Report - Sheng Siong
FY 2011 Annual Report - Sheng Siong
FY 2011 Annual Report - Sheng Siong
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<strong>Sheng</strong> <strong>Siong</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2011</strong><br />
Notes to the Financial Statements<br />
11 Share capital (Continued)<br />
Capital management<br />
The Group defines capital as share capital and accumulated profits.<br />
The Group’s objective when managing capital is to maintain an efficient capital structure so as to maximise<br />
shareholder value. In order to maintain or achieve an efficient capital structure, the Group may adjust the<br />
amount of dividend payment, return capital to shareholders, issue new shares, obtain new borrowings or sell<br />
assets to reduce borrowings.<br />
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of<br />
borrowings and the advantages and security afforded by a sound capital position.<br />
There were no changes in the Group’s approach to capital management during the year. Neither the Company<br />
nor any of its subsidiaries are subject to externally imposed capital requirements.<br />
12 Merger reserve<br />
Merger reserve represents the difference between the purchase consideration of $78.2 million paid by the<br />
Company for the acquisition of the entities under common control which subsequently became subsidiaries of<br />
the Company and the aggregated share capital of the combining entities.<br />
13 Deferred tax – Group<br />
Movements in deferred tax liabilities of the Group during the years are as follows:<br />
At<br />
1 January<br />
2010<br />
Recognised<br />
in profit<br />
or loss<br />
(note 19)<br />
At 31<br />
December<br />
2010<br />
Recognised<br />
in profit<br />
or loss<br />
(note 19)<br />
At 31<br />
December<br />
<strong>2011</strong><br />
$’000 $’000 $’000 $’000 $’000<br />
Property, plant and equipment 729 (121) 608 467 1,075<br />
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