73
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
NOTES
TO THE FINANCIAL STATEMENTS
Year ended 30 June 2016
13 SHARE CAPITAL
Company
2016
2015
Number of
Number of
Note shares
shares
Issued and fully paid ordinary share capital with
no par value:
At beginning of the year
233,324,614 190,467,471
Issued in business combination
28
– 42,857,143
At end of the year
233,324,614 233,324,614
Ordinary shares
The holders of ordinary shares are entitled to receive dividends as declared from time
to time, and are entitled to one vote per share at meetings of the Company. All shares
rank equally with regard to the Company’s residual assets. All issued shares are fully
paid, with no par value.
Issue of ordinary shares
Financial year ended 30 June 2015
On 28 November 2014, 42,857,143 ordinary shares of no par valuewere issued at market
price of $0.20 each and used as part of the purchase consideration for the acquisition of
ECG Property Services Pte. Ltd..
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 benefits for other stakeholders, and to provide an adequate return to owners by
pricing the sales commensurately with the level of risk. Management sets the amount
of capital to meet its requirements and the risk taken.
13 SHARE CAPITAL (CONT’D)
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, management
may adjust the amount of dividends paid to owners, return capital to owners, issue new
shares, or sell assets to reduce debt.
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, revaluation reserve, retained earnings and non-controlling interests).
Group
2016
2015
$
$
Net debt:
All current and non-current borrowings including
finance leases
43,700,716 62,533,404
Less: Cash and cash equivalents
(7,795,289) (13,744,705)
Net debt
35,905,427 48,788,699
Total equity
62,079,648 83,785,006
Debt-to-adjusted capital ratio
57.8% 58.2%
There were no changes in the approach to capital management during the year.
Neither the Company nor any of its subsidiaries are subject to externally imposed
capital requirements.
