Serba Dinamik Annual Report 2016

2016 Annual Report 159 NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 25. CAPITAL MANAGEMENT (CONT’D) Group 2016 RM Total equity 817,142,487 Debt-to-equity ratios 0.49 There was no change in the Group’s approach to capital management during the financial period. The Group is also required to maintain a maximum debt-to-equity ratio of 2.00 to comply with bank covenants, failing which, the banks may call an event of default. The Group has not breached this covenant (see Note 14). 26. RELATED PARTIES Identify of related parties For the purposes of the financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control or jointly control the parties or exercise significant influence over the parties in making financial and operating decisions, or vice versa, or where the Group or the Company and the parties are subject to common control. Related party may be individuals or other entities. Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group and the Company either directly or indirectly and entity that provides key management personnel services to the Group. Key management personnel include all the Directors of the Group and the Company, and certain members of senior management of the Group and the Company. The Group and the Company has related party relationships with its significant investors, subsidiaries, associate and key management personnel.