NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 44. CAPITAL MANAGEMENT The primary objective of the Group’s and the Company’s capital management is to ensure that they maintain a strong credit rating and healthy capital ratio in order to sustain future development of the businesses so that they can continue to maximise returns for shareholders and benefits for other stakeholders. The Group and the Company manage their capital structure and make adjustments to them, 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 2025 and 30 September 2024. The debt-to-equity ratio is calculated as total debts divided by total capital of the Group and the Company. 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 and the Company’s policy is to keep the debt-to-equity ratio of not exceeding 80%. The debt-to-equity ratio as at 30 September 2025 and 30 September 2024, which are within the Group’s and the Company’s objectives of capital management are as follows: The Group The Company 2025 2024 2025 2024 RM RM RM RM Total debts 504,030,507 454,326,509 220,553,425 175,903,887 Total equity attributable to owners of the parent 1,879,181,719 1,826,110,577 1,277,466,326 1,253,723,862 Debt-to-equity ratio (%) 27% 25% 17% 14% The Group and the Company are 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 in respect of the revolving credit facility. PG | 310 ANNUAL REPORT 2025 MKH BERHAD
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