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TEHO INTERNATIONAL INC LTD Annual Report 2012 52
Notes to the
Financial Statements
30 June 2012
22. Cash and Cash Equivalents (Continued)
22B. Non-cash transactions:
There were acquisitions of plant and equipment with a total cost of $632,000 (2011: NIL)
acquired by means of fnance leases.
23. Share Capital
Number
of shares
issued
Share
capital
$
Group and Company:
Ordinary shares of no par value:
Balance at 1 July 2010 and 30 June 2011 111,800,000 15,480,668
Issue of shares (Note 26) 3,891,051 600,000
Balance at 30 June 2012 115,691,051 16,080,668
Capital management:
The objectives when managing capital are: to safeguard the reporting entity’s ability to
continue as a going concern, so that it can continue to provide returns for owners and
benefts for other stakeholders, and to provide an adequate return to owners by pricing
products and services commensurately with the level of risk. The management sets the
amount of capital to meet its requirements and the risk taken. There were no changes
in the approach to capital management during the reporting year. The management
manages the capital structure and makes adjustments to it where necessary or possible
in the light of changes in conditions and the risk characteristics of the underlying assets.
In order to maintain or adjust the capital structure, the management may adjust the
amount of dividends paid to owners, return capital to owners, issue new shares, or sell
assets to reduce debt.
23. Share Capital (Continued)
The management monitors the capital on the basis of the debt-to-adjusted capital ratio.
This ratio is calculated as net debt / adjusted capital. Net debt is calculated as total
borrowings less cash and cash equivalents. Adjusted capital comprises all components
of equity (i.e. share capital, and retained earnings).
Group
2012
$
2011
$
Net debt:
All current and non-current borrowings including
fnance leases 13,956,909 12,179,646
Less: cash and cash equivalents (7,054,224) (8,111,180)
Net debt 6,902,685 4,068,466
Net capital 27,346,363 25,407,712
Debt-to-adjusted capital ratio 25.2% 16.0%
The increase in debt-to-adjusted capital ratio resulted primarily from increase in bank
borrowings.
The ordinary shares of no par value which are fully paid carry no right to fxed income. The
holders of ordinary shares are entitled to receive dividends when declared by the company.
All ordinary shares carry one vote per share without restrictions. In order to maintain its
listing on the Singapore Exchange, the company has to have share capital with at least
a free foat of at least 10% of the shares. The company met the capital requirement on
its initial listing and the rules limiting treasury share purchases mean it will automatically
continue to satisfy that requirement, as it did throughout the year. Management receives
a report from the registrars frequently on substantial share interests showing the non-free
foat and it demonstrated continuing compliance with the 10% limit throughout the year.
The company is a Catalist company and has appointed a sponsor to comply with the
Catalist Rules and to facilitate certain corporate actions including rights issues, placement
of shares, company warrants or other convertible securities for cash, major transactions,
transactions requiring shareholders’ approval and schemes of arrangement.