MKH Berhad 225 Notes to the Financial Statements For the Financial Year Ended 30 September 2022 CAPITAL MANAGEMENT 47. The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratio in order to sustain future development of the businesses so that it can continue to maximise returns for shareholders and benefits for other stakeholders. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or to adjust capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders, issue new shares, obtain new borrowings or repay existing borrowings. No changes were made in the objectives, policies and processes during the financial years ended 30 September 2022 and 30 September 2021. 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 2022 and 30 September 2021, which are within the Group’s objectives of capital management are as follows: The Group is not subject to any externally imposed capital requirements other than PT Maju Kalimantan Hadapan which are required to maintain a debt-to-equity ratio of 75:25 as well as loan-to-value ratio of not more than 75% 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. 2022 RM 2021 RM The Group Total debts Debt-to-equity ratio (%) Total equity attributable to owners of the parent 1,706,069,002 1,807,541,410 548,894,601 420,682,681 32% 23% RECLASSIFICATIONS 48. In order to be comparable with the current year presentation, the Group has made certain reclassification of accounts in the consolidated statement of financial position. The reclassifications are as follows: RM RM 539,809,044 (31,741,195) Property development costs 508,067,849 RM As previously reported Reclassification As reclassified Statement of Financial Position (extract) Current Assets - 31,741,195 Contract cost assets 31,741,195 Statement of Cash Flows (extract) 4,600,776 6,766,393 Change in property development costs 11,367,169 - (6,766,393) Change in contract cost assets (6,766,393) Cash flows from/(used in) operating activities Included in amount due from s bsidiaries are unsecured amounts of:
RkJQdWJsaXNoZXIy NDgzMzc=