Tropicana Corporation Berhad Annual Report 2019

44. SUBSEQUENT EVENTS (CONT’D.) In addition, the Group and the Company also noted that the value of certain assets and liabilities recorded in the statement of financial position determined by reference to fair value at 31 December 2019 may have changed by the date of this report. These include the values of investment properties and other assets. The Group and the Company will continue to monitor the development of these events and the impact of COVID-19 to the Group’s and the Company’s business. 45. MATERIAL LITIGATION On 26 August 2013, the Company received an order from the Arbitral Tribunal to add the Company as a party to the arbitration proceedings between Dijaya-Malind JV (Mauritius) Limited (“ DMML ”), Dijaya-Malind Properties (India) Private Limited (“ DMPPL ”) and Starlite Global Enterprise (India) Limited (“ SGEIL ”) (“ Order ”). The arbitration proceedings were previously instituted by DMML and DMPPL against SGEIL to seek the return of the deposit sum and damages arising from termination of the Deed of Novation cum Joint Development Agreement. The Company appealed to the City Civil Court of Hyderabad against the Order which was dismissed on 2 June 2014. As our legal counsel opines the Order was erroneous and wrong in law, the Company has filed a further appeal to the High Court of Judicature of Andhra Pradesh and is pending hearing date to be set. 46. CAPITAL MANAGEMENT The primary objective of the Group’s and of the Company’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 shareholders’ value. The Group and the Company manage their capital structure and make adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group and the Company 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 financial years ended 31 December 2019 and 31 December 2018. The Group and the Company monitor capital using a gearing ratio, which is net debt divided by total capital. The Group and the Company include within net debt, loans and borrowings less cash and bank balances. Capital refers to equity attributable to owners of the parent. Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Borrowings (Note 32) 2,519,115 1,956,185 336,090 438,397 Less: Cash and bank balances (Note 26) (754,949) (975,774) (52,011) (40,623) Net debt 1,764,166 980,411 284,079 397,774 Equity attributable to the owners of the parent 4,661,982 3,403,670 3,536,010 2,661,576 Gearing ratio 0.38 0.29 0.08 0.15 The gearing ratio is not governed by the MFRS and its definition and calculation may vary from one group/company to another. For the financial year ended 31 December 2019 Notes to the Financial Statements Tropicana Corporation Berhad Annual Report 2019 pg 248 About Tropicana Our Strategic Performance Our Leadership