NOTES TO THE FINANCIAL STATEMENTS Registration No. 200301030845 (633265-K) - 148 - 41. Capital Management The Group’s management manage its capital is to maintain a strong capital base and safeguard the Group’s ability to continue as a going concern and maintains an optimal capital structure, so as to maximise shareholders value. The management reviews the capital structure by considering the cost of capital and the risks associated with the 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 2021 2020 RM RM Total loans and borrowings 102,687,704 113,385,291 Less: Deposits, bank and cash balances (48,942,011) (37,695,059) Net debt 53,745,693 75,690,232 Total equity 161,101,920 132,448,904 Gearing ratio 33% 57% There were no changes in the Group’s approach to capital management during the financial year. The Group is not subject to any externally imposed capital requirements. 42. 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 28 April 2022. 225 ANNUAL REPORT 2021 • DESTINI BERHAD
RkJQdWJsaXNoZXIy NDgzMzc=