Sasbadi Annual Report 2019

PAGE 135 ANNUAL REPORT 2019 FINANCIAL STATEMENTS (continued) 24. Capital management The Group’s objectives when managing capital are to maintain a strong capital base and safeguard the Group’s ability to continue as going concern, so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Directors monitor and are determined to maintain an optimal debt-to- equity ratio that complies with debt covenants and regulatory requirement. The debt-to-equity ratios are as follows: Group Note 2019 2018 RM’000 RM’000 Restated Total loans and borrowings 15 35,360 42,655 Less: Cash and cash equivalents 13 (7,443) (6,164) Net debt 27,917 36,491 Total equity 154,942 154,739 Net debt-to-equity ratio 0.18 0.24 There was no change in the Group’s approach to capital management during the financial year. 25. Operating leases Leases as lessee Non-cancellable operating lease rentals are payable as follows: Group 2019 2018 RM’000 RM’000 Less than one year 951 330 Between one and three years 783 175 1,734 505 The Group leases a number of office premises under operating leases. The leases typically run for a period of one to three years, with an option to renew the lease after the date of expiration. None of the leases includes contingent rentals.