PRG Holdings Berhad Annual Report 2020

37. OPERATING SEGMENTS (continued) Geographical information (continued) 2020 2019 RM’000 RM’000 Non-current assets Malaysia 37,586 66,480 Asia Pacific (excluding Malaysia) 27,824 28,437 65,410 94,917 Major customer There is no customer with revenue equal to or more than ten percent (10%) of the revenue of the Group. 38. 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 2019. 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 2020 and 31 December 2019. 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 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Borrowings 61,218 32,999 - 8,411 Less: Cash and bank balances (34,874) (23,386) (508) (130) Net debt 26,344 9,613 (508) 8,281 Total capital 153,969 158,795 162,387 173,566 Gearing ratio 17% 6% - 5% 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 of more than 25% of the issued 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 2020. PRG HOLDINGS BERHAD 178 Notes to the Financial Statements 31 December 2020 cont’d