ANNUAL REPORT 2025 FINANCIAL STATEMENTS Notes to the Financial Statements (Cont’d) For the Financial Year Ended 31 March 2025 191 52. FINANCIAL INSTRUMENTS (CONT’D) 52.2 CAPITAL RISK MANAGEMENT The Group manages its 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 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 manages its capital based on debt-to-equity ratio that complies with debt covenants and regulatory requirements, if any. The debt-to-equity ratio is calculated as total borrowings divided by total equity. The Group includes within total borrowings, loans and borrowings from financial institutions. Capital includes equity attributable to the owners of the parent and non-controlling interest. The debt-to-equity ratio of the Group at the end of the financial year is as follows:- Group 2025 2024 RM’000 RM’000 Trade financing (Note 34) 35,975 40,196 Term financing (Note 29) - 496 Term loans (Note 28) 13,614 17,694 Lease liabilities (Note 30) 2,261 863 Hire purchase payables (Note 31) 454 571 Total borrowings 52,304 59,820 Total equity 447,359 367,274 Debt-to-equity ratio 0.12 0.16 There was no change in the Group’s approach to capital management during the financial year. The Company manage its capital based on debt-to-equity ratio. The debt-to-equity ratio of the Company at the end of the reporting period is not presented as its cash and cash equivalents exceeded the total external borrowings. 52.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS 2025 Group Company RM’000 RM’000 Financial Assets Fair Value Through Profit or Loss Other investments (Note 10) 32,275 31,275 Short-term investments (Note 19) 9,175 2,534 41,450 33,809 Fair Value Through Other Comprehensive Income Other investments (Note 10) 350 - Amortised Cost Trade receivables (1) (Note 16) 146,712 - Other receivables and deposits (Note 17) 2,395 719 Amounts owing by subsidiaries (Note 18) - 5,538 Deposits with licensed banks (Note 20) 11,609 - Cash and bank balances (Note 20) 61,598 31,115 222,314 37,372
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