Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 138 32. Capital Management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital using a gearing ratio. The Group’s policy is to maintain a prudent level of gearing ratio that complies with debt covenants and regulatory requirements. The gearing ratios at end of the reporting period are as follows: Group 2017 2016 RM RM Total borrowings (Note 21) - 1,500,000 Less: Cash and bank balances (1,952,639) (8,097,777) Net cash (1,952,639) (6,597,777) Total equity 24,999,866 22,775,692 Gearing ratio NA NA There were no changes in the Group’s approach to capital management during the financial year. 33. Material Litigation Shah Alam High Court Civil Suit No. 22NCVC-186-03/2015: Rapid Rail Sdn. Bhd. (“Plaintiff”) v Asia Media Sdn. Bhd. (“Defendant”) On 27 March 2015, the Plaintiff filed the Writ and Statement of Claim against the Defendant seeking, inter alia: (i) Payment of Minimum Guaranteed Sum (“MGS”) amounting to RM 1,215,000 for Year 5 of the Licence Agreement; (ii) Payment of cumulative MGS for the extended period amounting to RM607,500; and (iii) Costs and interests. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)