EXCEL FORCE MSC BERHAD Annual Report 2018

120 ANNUAL REPORT 2018 33. Capital Management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. 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 Company 2018 2017 2018 2017 RM RM RM RM Loan and borrowing - 4,240,002 - 4,240,002 Trade and other payables 10,450,655 2,542,636 10,347,212 2,462,352 10,450,655 6,782,638 10,347,212 6,702,354 Less: Cash and cash equivalents (29,812,581) (21,541,617) (29,013,216) (21,369,345) Net asset (19,361,926) (14,758,979) (18,666,004) (14,666,991) Total equity 47,202,049 46,571,961 47,300,932 46,867,516 Net gearing ratio * * * * * Net gearing ratio is not applicable as the Group and the Company are in a net asset position. 34. Capital Commitment Group and Company 2018 2017 RM RM Authorised and contracted for: - Property, plant and equipment 1,479,690 - 35. 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 10 April 2019. Notes To The Financial Statements 31 December 2018 (cont’d)