Notes to the Financial Statements - SingTel

Notes to the Financial StatementsFor the financial year ended 31 March 201132. OTHER NON-CURRENT LIABILITIESGroupCompany2011 2010 2011 2010S$ Mil S$ Mil S$ Mil S$ MilPerformance share liability 12.1 8.7 10.6 6.5Other deferred income - 13.9 - -Other payables, including purchaseconsideration payable (see Note 27) 181.8 333.1 7.1 149.3193.9 355.7 17.7 155.833. SHARE CAPITAL2011 2010Number of Share Number of Shareshares capital shares capitalGroup and Company Mil S$ Mil Mil S$ MilBalance as at 1 April 15,932.2 2,616.3 15,926.8 2,605.6Issue of shares under share options 3.5 6.5 5.4 10.7Balance as at 31 March 15,935.7 2,622.8 15,932.2 2,616.3All issued shares are fully paid.During the year, the Company issued 3,546,818 (2010: 5,391,400) shares upon the exercise of 3,546,818 (2010: 5,391,400) shareoptions under the 1999 Scheme at exercise prices between S$1.41 and S$2.12 (2010: S$1.41 and S$2.85) per share.The newly issued shares rank pari passu in all respects with the previously issued shares.Capital ManagementThe Group is committed to an optimal capital structure while maintaining financial flexibility and investment grade creditratings. In order to achieve an optimal capital structure, the Group may adjust the amount of dividend payment, return capital toshareholders, issue new shares, buy back issued shares, obtain new borrowings or reduce its borrowings.The Group monitors capital based on gross and net gearing ratios, and the dividend payout ratio ranges from 55% to 70%of underlying net profit. Underlying net profit is defined as net profit before exceptional items and exchange differences oncapital reductions of certain overseas subsidiaries, as well as significant exceptional items of the associated and jointventure companies.From time to time, the Group purchases its own shares from the market. The shares purchased are primarily for delivery toemployees upon vesting of performance shares awarded under the Group’s performance share plans. The Group can alsocancel the shares which are re-purchased from the market.There were no changes in the Group’s approach to capital management during the financial year.The Company and its subsidiaries are not subject to any externally imposed capital requirement.ANNUAL REPORT 2010/2011 173