36. OPERATING SEGMENTS (continued) Geographical information (continued) 2021 2020 RM’000 RM’000 Non-current assets Malaysia 38,423 37,586 Asia Pacific (excluding Malaysia) 6,256 27,824 44,679 65,410 Major customer There is no customer with revenue equal to or more than ten percent (10%) of the revenue of the Group. 37. 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 2020. 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 2021 and 31 December 2020. 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 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Borrowings 57,368 61,218 - - Less: Cash and bank balances (37,741) (34,874) (112) (508) Net debt 19,627 26,344 (112) (508) Total capital 201,705 199,286 146,455 162,387 Gearing ratio 10% 13% - - 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 2021. NOTES TO THE FINANCIAL STATEMENTS P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 180 31 December 2021 (cont’d)
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