Page 114 - ar2011_2012

112
STAMFORD LAND CORPORATION LTD
Notes to the Financial Statements
28 Cash and Cash Equivalents (Cont’d)
Restricted bank deposits are bank balances of certain subsidiaries pledged in relation to interest
payment and bank balance of a subsidiary pledged in relation to bankers’ guarantee issued to
the subsidiary’s contractors.
The rate of interest for the cash on the interest earning balances range between 0.06% and
4.96% (2011: 0.04% and 3.90%) per annum.
Fixed deposits represent short-term deposits with maturity dates of less than 3 months.
29 Share Capital
THE GROUP & THE COMPANY
Number of
ordinary shares $’000
2012 2011 2012 2011
Issued and fully paid:
At beginning of the year 863,833,482 863,833,482 144,556 144,556
At end of the year 863,833,482 863,833,482 144,556 144,556
The ordinary shares of no par value carry no right to fxed income and are fully paid-up.
The only externally imposed capital requirement is that for the Company to maintain its listing on
the Singapore Stock Exchange, it has to have share capital with at least a free foat of 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.
Capital management
The primary objective of the Group’s capital management is to have a strong capital base
and a good rating to maintain investor, creditor and market confdence and to sustain future
development of the business.
The management does not set a target level of gearing but uses capital opportunistically to
support its business and to add value for shareholders. The key discipline adopted is to widen
the margin between the return on capital employed and the cost of that capital.