Chemical Company of Malaysia Berhad Annual Report 2019

26. Capital management The Group’s objectives when managing capital is to maintain a strong capital base and safeguard the Group’s ability to continue as a going concern, so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Directors monitor and are determined to maintain an optimal debt-to-equity ratio that complies with debt covenants. The Group is required to maintain a maximumdebt-to-equity ratio of 1.50 to comply with bank covenants, failing which, the banks may call for event of default. The debt-to-equity ratio at 31 December 2019 and at 31 December 2018 were as follows:   Group Note 2019 2018 Loans and borrowings 16 195,080 193,802 Lease liabilities 1,074 - Total debt 196,154 193,802 Total equity 326,054 318,974 Debt-to-equity ratios 0.60:1 0.61:1 There was no change in the Group’s approach to capital management during the financial year. 27. Capital and other commitments   Group   Company 2019 2018 2019 2018 Capital expenditure commitments Plant and equipment Contracted but not provided for 49,200 31,726 - - Intangible asset Contracted but not provided for 5,500 - 5,500 - BUSINESS OVERVIEW OTHER INFORMATION GOVERNANCE STRUCTURE 205 ANNUAL REPORT 2019 FINANCIAL STATEMENTS