Tropicana Corporation Berhad Annual Report 2020

46. 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. 47. 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 2020 and 31 December 2019. The Group and the Company monitor capital using a gearing ratio, which is net debt divided by total equity. The Group and the Company include within net debt, loans and borrowings less cash and bank balances. Group Company 2020 2019 2020 2019 RM'000 RM'000 RM'000 RM'000 Borrowings (Note 32) 3,596,771 2,519,115 1,671,761 336,090 Less: Cash and bank balances (Note 26) (621,892) (754,949) (64,975) (52,011) Net debt 2,974,879 1,764,166 1,606,786 284,079 Total equity 5,759,306 5,648,688 3,694,902 3,788,671 Gearing ratio 0.52 0.31 0.43 0.07 The gearing ratio is not governed by the MFRS and its definition and calculation may vary from one group/company to another. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 ANALYSIS OF SHAREHOLDINGS As at 19 April 2021 ORDINARY SHARES Class of shares : Ordinary shares Listing status : Quoted on the Main Market of Bursa Malaysia Securities Berhad Total issued shares : 1,470,425,550 ordinary shares Treasury shares : 13,937,943 treasury shares held by the Company Voting rights : One vote per ordinary share DISTRIBUTION OF SHAREHOLDINGS Sizes of Shareholdings No. of Holders % of Holders Total Holdings % of Holdings 1 to 99 1,808 18.55 63,154 # 100 to 1,000 612 6.28 192,030 0.01 1,001 to 10,000 5,308 54.45 17,463,550 1.20 10,001 to 100,000 1,761 18.07 42,422,506 2.91 100,001 to 72,824,379* 256 2.63 1,148,270,103 78.84 72,824,380 and above ** 3 0.03 248,076,264 17.03 Total 9,748 100.00 1,456,487,607 @ 100.00 Notes: # Negligible * Less than 5% of issued ordinary shares ** 5% and above of issued ordinary shares @ exclude a total of 13,937,943 treasury shares retained by the Company as per record of depositors as at 19 April 2021 SUBSTANTIAL SHAREHOLDERS AS PER THE REGISTER OF SUBSTANTIAL SHAREHOLDERS (excluding bare trustees) No. of Ordinary Shares Held Names Direct Interest % Deemed Interest % Tan Sri Dato’ Tan Chee Sing 359,462,475 24.68 558,762,817 (1) 38.37 Tan Sri Dr Lim Wee Chai 162,208,937 11.14 – – Aliran Firasat Sdn Bhd 306,684,845 21.06 – – Golden Diversity Sdn Bhd 146,933,397 10.09 – – Impeccable Ace Sdn Bhd 105,144,575 7.22 – – Notes: (1) Deemed interest by virtue of his interests in Aliran Firasat Sdn Bhd, Golden Diversity Sdn Bhd and Impeccable Ace Sdn Bhd pursuant to Section 8 of the Companies Act 2016 (“ Act ”). ANNUAL REPORT 2020 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 292 293