MISC BERHAD - Annual Report 2014 p 298 36. Capital management Capital management is defined as the process of managing the composition of the Group’s debt and equity to ensure it maintains a strong credit rating and healthy capital ratios that support its businesses and maximise its shareholder value. The Group’s approach in managing capital is set out in the Group Corporate Financial Policy. The Group and the Corporation monitor and maintain a prudent level of total debt to total asset ratio to optimise shareholder value and to ensure compliance with covenants under debt agreements. The debt to equity ratios of the Group and of the Corporation as at 31 December 2014 and 31 December 2013 are as follows: Group Corporation Note 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Short term borrowings 18(c) 1,148,814 3,392,624 560,122 500,000 Long term borrowings 18(c) 7,590,349 6,826,205 3,586,547 4,881,954 Total debts 8,739,163 10,218,829 4,146,669 5,381,954 Total equity 28,821,104 25,757,369 19,355,444 17,772,883 Gross debt equity ratio 0.30 0.40 0.21 0.30 37. Subsidiaries and activities Name of company Country of incorporation Principal activities Ownership interest and voting interest (%) 2014 2013 MISC Tankers Sdn. Bhd. Malaysia Investment holding and provision of management services 100 100 Puteri Intan Sdn. Bhd. Malaysia Shipping 100 100 Puteri Delima Sdn. Bhd. Malaysia Shipping 100 100 Puteri Nilam Sdn. Bhd. Malaysia Shipping 100 100 Puteri Zamrud Sdn. Bhd. Malaysia Shipping 100 100 Puteri Firus Sdn. Bhd. Malaysia Shipping 100 100 MISC Ship Management Sdn. Bhd. Malaysia Dormant 100 100 NOTESTOTHE FINANCIAL STATEMENTS - 31 December 2014
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