37. Financial risk management objectives and policies (cont’d.) (e) Equity price risk (cont’d.) The following table demonstrates the indicative effects on the Group and the Corporation’s investment in quoted equity shares applying reasonably foreseeable market movements in the following index rates: Weighted Effect on average equity Carrying change in Increase/ value index rate (Decrease) RM’000 % RM’000 Group and Corporation 2016 Malaysian quoted equity shares 66,687 +15 10,003 Malaysian quoted equity shares 66,687 -15 (10,003) 2015 Malaysian quoted equity shares 76,244 +15 11,437 Malaysian quoted equity shares 76,244 -15 (11,437) This analysis assumes all other variables remain constant and that the price of the Group’s quoted equity investment is perfectly correlated to the market index. 38. 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. Financial Statements 319
RkJQdWJsaXNoZXIy NDgzMzc=