Yinson Annual Report 2020

315 Annual Report 2020 44. Capital management For the purpose of the Group’s and the Company’s capital management, capital includes share capital and all other equity reserves attributable to owners of the Company. The objectives of the Group’s and the Company’s capital management are to maximise shareholders’ value, to maintain optimal capital structure to reduce cost of capital and to sustain future developments of the Group. In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders, shares buy-back or issue new shares. The Group and the Company monitor capital using a debt-to-capital ratio, which is net debt divided by total capital plus net debt. Net debt includes interest bearing loans and borrowings, trade and other payables, less cash and short-term deposits and current other investments. Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Loans and borrowings (Note 32) 3,830,403 3,149,730 57,392 45,867 Lease liabilities (Note 33(b)) 31,393 - 308 - Trade and other payables (Note 36) 1,210,442 735,170 1,100,144 590,486 Less: Cash and bank balances (Note 26) (1,276,190) (1,217,279) (69,153) (9,480) Other investments, current (Note 22) (188,762) (72,226) (3,482) - Net debt 3,607,286 2,595,395 1,085,209 626,873 Equity attributable to owners of the Company, total capital 1,635,957 1,745,412 1,466,517 1,374,111 Capital and net debt 5,243,243 4,340,807 2,551,726 2,000,984 Debt-to-capital ratio 69% 60% 43% 31% The Group and Company are required to comply with financial covenants such as Debt Service Cover Ratio, Debt to Equity Ratio and Gearing Ratio, as defined in the respective facility agreements. During the financial year, the Group and the Company have complied with these requirements.