37. FINANCIAL INSTRUMENTS (CONT’D) 37.2 CAPITAL RISK MANAGEMENT The Group and the Company manage their capital to ensure that entities within the Group will be able to maintain an optimal capital structure so as to support its businesses and maximise shareholders value. To achieve this objective, the Group and the Company may make adjustments to the capital structure in view of changes in economic conditions, such as adjusting the amount of dividend payment, returning of capital to shareholders or issuing new shares. The Group and the Company manage their capital based on debt-to-equity ratio that complies with debt covenants and regulatory, if any. The debt-to-equity ratio is calculated as net debt divided by total equity. The Group and the Company include within net debt, other payables with interest-bearing, loans and borrowings from financial institutions less cash and cash equivalents. The debt-to-equity ratio of the Group and the Company at the end of the reporting period are as follows:- The Group The Company 2025 2024 2025 2024 RM’000 RM’000 RM’000 RM’000 Lease liabilities 15,655 31,736 - - Term loan 24,843 - - - IMTN 197,547 196,655 197,547 196,655 238,045 228,391 197,547 196,655 Less: Cash and cash equivalents (Note 31(d)) (234,927) (321,590) (104,252) (205,936) Net debt 3,118 (93,199) 93,295 (9,281) Total equity 787,534 714,945 702,911 412,818 Debt-to-equity ratio 0.00 * 0.13 * Note:- *- Not applicable as the Group’s and the Company’s cash and cash equivalents exceed its borrowings. There were no changes in the approach to capital management during the financial year. 237 Annual Report 2025
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