NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
31
CAPITAL MANAGEMENT
The Group’s objectives when managing capital are:
(a)
To safeguard the Group’s ability to continue as a going concern, so that it continues to provide returns
for shareholders and benefits for other stakeholders;
(b)
To support the Group’s stability and growth; and
(c)
To provide capital for the purpose of strengthening the Group’s risk management capability.
The Group actively and regularly reviews and manages its capital structure to ensure optimal capital structure
to maximise shareholder returns, taking into consideration the future capital requirements of the Group and
capital efficiency, prevailing and projected profitability, projected operating cash flows, projected capital
expenditures and projected strategic investment opportunities. The Group currently does not adopt any formal
dividend policy.
The capital of the Groupmainly consists of equity holders of the Company comprising share capital, accumulated
profits and merger reserve. The Group’s overall strategy remains unchanged from 2015.
The Group are in compliance with all externally imposed capital requirements for financial years ended 30 June 2016
and 2015.
32
SEGMENT INFORMATION
The Group is organised into business units based on nature of the projects for management purposes. The
reportable segments are revenue from Repair and Redecoration (“R&R”), Addition and Alteration (“A&A”) and
Coatings and Paintings (“C&P”).
During the year, due to the expansion of the Group, the Group reorganised the business units for management
purposes. The new reportable segment for the year is Coating and Painting ("C&P”) which focuses on coating
and painting. Accordingly, the comparatives for “others” segment have been restated to reclassify information
to C&P segment.
R&R focuses mainly on non-structural construction, improvements and routine maintenance works.
A&A focuses mainly on structural works and infrastructure works.
C&P focuses mainly on coatings and paintings works.
Others segment focuses mainly on commercial interior design, home retrofitting, landscaping works, leasing
services, waterproofing and green solutions.
Management monitors the operating results of its business units separately for making decisions about allocation
of resources and assessment of performances of each segment.
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ISOTEAM LTD.
ANNUAL REPORT 2016
