Excel Force MSC Berhad Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (cont’d) E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 98 32. FINANCIAL INSTRUMENTS (continued) (a) Capital management (continued) The Group monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Group includes within net debt, loans and borrowings, trade and other payables, less cash and bank balances. Capital represents equity attributable to the owners of the parent. Group Company 2015 2014 2015 2014 RM RM RM RM Borrowings 6,202,218 7,234,688 6,202,218 7,234,688 Trade and other payables 3,577,383 3,402,578 2,213,815 2,581,140 Total liabilities 9,779,601 10,637,266 8,416,033 9,815,828 Less: Cash and bank balances (Note 14) (19,701,826) (20,547,111) (18,583,193) (19,555,739) Net asset (9,922,225) (9,909,845) (10,167,160) (9,739,911) Total equity 44,446,490 43,081,728 44,033,021 42,708,976 Gearing ratio * * * * * It is not applicable due to net asset position. The Company has complied with Practice Note No. 17/2005 of the Bursa Malaysia Securities for the financial year ended 31 December 2015. (b) Categories of financial instruments Group Loans and receivables Fair value through profit or loss Total 2015 RM RM RM Financial assets Trade and other receivables, net of prepayments 7,560,955 - 7,560,955 Cash and bank balances 9,438,453 - 9,438,453 Short term funds - 10,263,373 10,263,373 16,999,408 10,263,373 27,262,781 Other financial liabilities Total RM RM Financial liabilities Borrowings 6,202,218 6,202,218 Trade and other payables 3,577,383 3,577,383 9,779,601 9,779,601