SCC Holdings Berhad Annual Report 2017

82 SCC Holdings Berhad (511477-A) | Annual Report 2017 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (CONT’D) 31. Capital Management The Group manages its capital to ensure that entities within the Group will be able to maintain an optimal capital structure so as to support their businesses and maximise shareholders’ value. To achieve this objective, the Group may make adjustments to the capital structure in view of changes in economic conditions, such as adjusting the amount of dividend payment, returning of capital to shareholders or issuing new shares. 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’000 RM’000 Debt Finance lease payable 25 92 Bank borrowings 276 71 301 163 Less: Cash and bank balances (6,443) (5,000) Excess of cash and bank balances (6,142) (4,837) Total Equity 40,130 38,468 Gearing ratio * * * Gearing ratio not applicable for financial years ended 31 December 2016 and 2017 as the cash and cash equivalent of the Group are sufficient to settle the outstanding debts. There were no changes in the Group’s approach to capital management during the financial year. 32. Comparative Figures The financial statements of the Group and of the Company for the financial year ended 31 December 2016 were audited by another firm of charted accountants. During the financial year, the Company made certain reclassification to the comparatives to conform to the current year presentation. There was no significant impact to the financial performance in relation to the financial year ended 31 December 2017. 33. Date of Authorisation for Issue The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the Directors on 3 April 2018.