MKH Annual Report 2017

43. CAPITAL MANAGEMENT (continued) The debt-to-equity ratio is calculated as total debts divided by total capital of the Group. Total debts comprise interest bearing loans and borrowings whilst total capital is the total equity attributable to owners of the parent. The Group’s policy is to keep the debt-to-equity ratio of not exceeding 80%. The debt-to-equity ratio as at 30 September 2017 and 2016, which are within the Group’s objectives of capital management are as follows: The Group 2017 2016 RM RM Loans and borrowings 772,516,817 838,762,794 Total equity attributable to owners of the parent 1,476,994,558 1,276,285,076 Debt-to-equity ratio (%) 52% 66% The Group is not subject to any externally imposed capital requirements other than PT Maju Kalimantan Hadapan and PT Sawit Prima Sakti which are required to maintain a debt-to-equity ratio of 75:25 and 65:35 respectively as well as loan-to-value ratio of not more than 75% and 65% respectively in respect of the term loan facilities. Based on the proforma financial information provided to the financial institutions, the Group has complied with this capital requirement. 44. COMPARATIVE FIGURES The presentation and classification of items in the current year financial statements have been consistent with the previous financial year except that certain comparative amounts have been reclassified to conform to current year’s presentation. The adjustments that have been made to the Group’s financial statements for the financial year ended 30 September 2016 are as follows: As previously As reported Reclassification reclassified RM RM RM The Group Statement of financial position Non-current liabilities Loans and borrowings 557,348,619 39,744,000 597,092,619 Current liabilities Loans and borrowings 281,414,175 (39,744,000) 241,670,175 Notes to the Financial Statements For the Financial Year ended 30 September 2017 204 MKH Berhad • Annual Report 2017