ACCOUNTABILITY | NOTES TO THE FINANCIAL STATEMENTS 275 INTEGRATED ANNUAL REPORT 2026 46. CAPITAL MANAGEMENT (a) Capital management objectives For the purpose of the Group’s and the Company’s capital management, capital includes share capital and all other equity reserves attributable to owners of the Company. The objectives of the Group’s and the Company’s capital management are to maximise shareholders’ value, to maintain optimal capital structure to reduce cost of capital and to sustain future developments of the Group. In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, carry out shares buy-back or issue new shares. The Group and the Company monitor capital using gross and net debt to equity ratio. Net debt includes interest bearing loans and borrowings, less cash and short-term deposits and current other investments. Group 2026 RM million 2025 RM million Loans and borrowings (Note 33) 18,022 16,054 Gross debt 18,022 16,054 Less: Cash and bank balances (Note 27) (4,528) (2,679) Investment funds, current (Note 23) (811) (49) Net debt 12,683 13,326 Total equity 9,247 7,864 Gross debt to equity ratio 1.95 2.04 Net debt to equity ratio 1.37 1.69 (b) Externally imposed covenants and capital structure The loans and borrowings of the Group and the Company as disclosed in Note 33 are subject to compliance with covenants as defined in the respective facility agreements. For the financial years ended 31 January 2026 and 2025, the Group and the Company have complied with these requirements. For the purpose of financial covenants calculations, the following ratios or indicators apply: • Debt Service Coverage Ratio • Gross gearing • Net gearing • Cash and cash equivalents (excluding restricted balances where required under each facility agreement) • Net worth The applicable ratios and indicators may be tested at the entity level, project level, sub-group level, or YHB Group level, depending on the specific requirements of each facility agreement. The covenants are required to be complied with on a quarterly, semi-annual, or annual basis, depending on the terms specified in each agreement. There are no indications that the Group may have difficulties complying with the covenants in the next twelve months from the reporting date. 47. PERPETUAL SECURITIES The carrying amounts of perpetual securities, as reflected in the Statement of Changes in Equity, are shown below: Instruments Group Company 2026 RM million 2025 RM million 2026 RM million 2025 RM million RM950 million Sukuk Mudharabah (Note (i)) 944 944 - - RM1.0 billion Perpetual Sukuk Wakalah (Note (ii)) 997 997 997 997 Total 1,941 1,941 997 997
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