EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 116 notes to the financial statements 31 december 2019 (cont’d) 36. Capital Management (Cont’d) Group Company 2019 2018 2019 2018 RM RM RM RM Lease liabilities 353,091 - 353,091 - Trade and other payables 3,100,043 10,450,655 2,978,665 10,347,212 3,453,134 10,450,655 3,331,756 10,347,212 Less: Cash and cash equivalents (22,789,063) (29,812,581) (21,729,766) (29,013,216) Net asset (19,335,929) (19,361,926) (18,398,010) (18,666,004) Total equity 96,468,675 47,202,049 96,292,867 47,300,932 Gearing ratio (times) -* -* -* -* * The gearing ratio is not applicable as the Group and the Company have sufficient cash and cash equivalents to settle the liabilities as at the end of the financial year. There were no changes in the Group’s and the Company’s approach to capital management during the financial year. 37. Capital Commitment Group and Company 2019 2018 RM RM Authorised and contracted for: - Property, plant and equipment 3,227,258 1,479,690 38. Subsequent Event Effect of outbreak of coronavirus pandemic The Directors of the Company have closely monitored the development of the outbreak of coronavirus pandemic (“COVID-19”) infection in Malaysia that may affect the business performance, financial performance and financial position of the Group and of the Company mainly due to travel and movement restriction and other precautionary measures imposed by relevant local authorities that affected the Group and the Company business operations. As at the date of this report, the financial impact of the COVID-19 outbreak to the Group and to the Company cannot be reasonably estimated due to the inherent unpredictable nature and rapid development relating to COVID-19, the extent of the impact depends on the on- going precautionary measures introduced by each country to address this pandemic and the durations of the pandemic. As such, the Directors of the Company will continue to closely monitor the situations and respond proactively to mitigate the impact on the Group’s and the Company’s financial performance and financial position. 39. 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 18 May 2020.