S E C T I O N 6 F I N A N C I A L R E P O R T S 181 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONT’D) 24. Capital management The Group and the Fund manage their capital to ensure that the Group and the Fund will be able to continue as going concern while maximising the return to unitholders through the optimisation of the debt and equity balance. The Group’s and the Fund’s overall strategy remain unchanged from 2018. The capital structure of the Group and the Fund consist of net debt (Islamic financing as detailed in Note 17) offset by cash and cash equivalents in Note 14 and unitholders’ fund of the Fund (Note 18) (comprising unitholders’ capital and undistributed income). The Group and the Fund are not subject to any externally imposed capital requirements. However, the Group and the Fund are required to comply with the SC Guidelines on Islamic financing. The SC Guidelines requires that the total Islamic financing of the Group and the Fund (including Islamic financing through issuance of debt securities) should not exceed 60% of the total asset value of the Group and the Fund at the time the Islamic financing are incurred. Notwithstanding, the Group’s and the Fund’s total Islamic financing may exceed this limit with the sanction of the unitholders by way of an ordinary resolution. The Manager’s risk management committee reviews the capital structure of the Group and of the Fund on a regular basis to ensure that the SC Guidelines are complied with. Gearing ratios The Group’s and the Fund’s gearing ratios are calculated based on the proportion of total Islamic financing to the total asset value. The gearing ratios at the end of the reporting period is as follows: Group Fund 2021 2020 2021 2020 RM RM RM RM Total Islamic financing (Note 17) 635,656,938 633,855,901 186,669,178 117,108,795 Amount due to a subsidiary - - 444,679,509 511,526,831 635,656,938 633,855,901 631,348,687 628,635,626 Total assets value as per statements of financial position 1,253,499,726 1,254,554,026 1,247,899,643 1,249,072,423 Total Islamic financing to total assets value ratio 50.7% 50.5% 50.6% 50.3% 25. Commitments The Group and the Fund lease out their investment properties under operating leases. The future minimum lease payments to be received under non-cancellable leases are as follows: Group Fund 2021 2020 2021 2020 RM RM RM RM Less than one year 36,370,801 35,992,210 36,370,801 35,992,210 Between one and five years 186,871,340 184,366,779 186,871,340 184,366,779 More than five years 412,687,998 450,039,591 412,687,998 450,039,591 635,930,139 670,398,580 635,930,139 670,398,580
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