PRG Holdings Berhad Annual Report 2018

31. OPERATING SEGMENTS (continued) Geographical information (continued) 2018 2017 RM’000 RM’000 Non-current assets Malaysia 29,376 31,974 Asia Pacific (excluding Malaysia) 15,741 13,930 45,117 45,904 Major customer There is no customer with revenue equal to or more than ten percent (10%) of the revenue of the Group. 32. FINANCIAL INSTRUMENTS (a) Capital management The primary objective of the capital management of the Group is to ensure that entities of the Group would be able to continue as going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The overall strategy of the Group remains unchanged from the financial year ended 31 December 2017. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. No changes were made in the objectives, policies or processes during the financial years ended 31 December 2018 and 31 December 2017. The Group monitors capital using a gearing ratio, which is net debt divided by total capital. The Group regularly reviews the gearing ratio to ensure they are at acceptable levels and within industry norms. Net debts are calculated as total borrowings less cash and bank balances. Capital represents equity attributable to the owners of the parent. A detailed calculation of the net debt is shown below: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Borrowings 46,593 28,569 15,060 - Less: Cash and bank balances (35,079) (42,023) (501) (128) Net debt/(cash) 11,514 (13,454) 14,559 (128) Total capital 131,958 131,665 147,877 141,494 Gearing ratio 9% # 10% # # Not applicable as the Group and the Company were in a net cash position. Pursuant to the requirements of Practice Note No. 17/2005 of the Bursa Malaysia Securities Berhad, the Group is required to maintain a consolidated shareholders’ equity equal to or not less than the 25% of the issued and paid-up capital (excluding treasury shares) and such shareholders’ equity is not less than RM40,000,000. The Group has complied with this requirement during the financial year ended 31 December 2018. 155 PRG HOLD I NGS BERHAD notes to the financial statements 31 December 2018 (continued)