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324

Notes to the

Financial Statements

for the year ended 31 December 2016

42. CAPITAL MANAGEMENT

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy

capital ratios in order to support its business and maximise shareholder value. The Group also aims to maintain a capital

structure that has an appropriate cost of capital available to the Group.

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To

maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to

shareholders or issue new shares. No changes were made in the objectives, policies or processes during the years

ended 31 December 2016 and 31 December 2015.

The Group manages capital by reference to the debt to asset ratio. The Group’s debt to asset ratio is as follows:

Group

Company

2016

RM’000

2015

RM’000

2016

RM’000

2015

RM’000

Bank overdrafts

29,889

17,897

CMTF-i

60,550

80,722

60,550

80.722

Murabahah Term Facility

575,922

415,238

Term loans

283,784

263,096

Finance leases

18,121

12,542

Revolving credit

21,433

Total debt

989,699

374,257

475,788

80.722

Total assets

3,529,339

2,617,373

2,486,923

1,885,260

Debt to asset ratio

28%

14%

19%

4%