236 Annual Report 2021 46. CAPITAL MANAGEMENT (CONT’D) 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 and lease liability 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 2021 and 30 September 2020, which are within the Group’s objectives of capital management are as follows: The Group 2021 2020 RM RM Total debts 548,894,601 652,514,453 Total equity attributable to owners of the parent 1,706,069,002 1,632,609,327 Debt-to-equity ratio (%) 32% 40% 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. 47. RECLASSIFICATION In order to be comparable with the current year presentation, the Group has made certain reclassifications of accounts in the consolidated statement of financial position. The reclassifications are as follows: As previously As reported Reclassification reclassified RM RM RM Statement of Financial Position (extract) Non-Current Assets Receivables, deposits and prepayments 41,554,880 3,022,547 44,577,427 Deferred tax assets 44,080,529 (2,844,000) 41,236,529 Current Assets Receivables, deposits and prepayments 213,546,752 (3,022,547) 210,524,205 Contract assets 345,870,566 (5,202,100) 340,668,466 Non-Current Liabilities Deferred tax liabilities 60,977,071 (2,844,000) 58,133,071 Current Liabilities Contract liabilities - 12,659,720 12,659,720 Payables and accruals 522,034,076 (17,861,820) 504,172,256 Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
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