Straco Corporation Limited • Annual Report 2014
68
NOTES TO THE FINANCIAL STATEMENTS
12
Share capital
Group and Company
2014
2013
No. of
shares
No. of
shares
Fully paid ordinary shares, with no par value:
On issue at 1 January and 31 December
868,929,580
868,929,580
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. In respect of the Company’s shares that are held by the Group, all
rights are suspended until these shares are reissued.
At 31 December 2014, the Group has outstanding share options granted under the Straco Share Option Scheme (note 14).
Capital management
The policy of the Board of Directors is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Group defines capital as total shareholders’ equity attributable to owners of the Company. The Board of
Directors monitors the return on capital, which the Group defines as net operating income divided by total shareholders’ equity excluding non-
controlling interests. The Board also monitors the level of dividends to ordinary shareholders.
The Group’s return on capital at the end of the reporting period was as follows:
2014
2013
$
$
Net profit before tax
57,640,983
50,269,812
Add/(Less):
Net interest income
(3,171,109)
(3,247,918)
Negative goodwill recognised
(113,546)
–
Loss/ (Gain) on disposal of property, plant and equipment
6,192
(692,001)
Exchange loss/ (gain)
1,487,792
(2,180,810)
Net operating income
55,850,312
44,149,083
Total shareholders’ equity
194,378,188
164,012,423
Return on capital at 31 December
28.7%
26.9%
