27. CAPITAL COMMITMENT Group 2024 2023 RM9000 RM9000 Capital expenditure in respect of: Purchase of intellectual properties: - approved and contracted for - 1,000 28. CAPITAL AND FINANCIAL RISK MANAGEMENT (a) Capital management The Group9s objectives when managing capital are to maintain a strong capital base and safeguard the Group9s ability to continue as a 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 debtto-equity ratio that complies with debt covenants and regulatory requirements. The debt-to-equity ratios are as follows: Group 2024 2023 RM9000 RM9000 Total loans and borrowings 7,437 8,626 Less: Cash and cash equivalents (10,980) (11,640) Net cash (3,543) (3,014) Total equity 152,346 153,126 Net debt-to-equity ratio N/A N/A The net debt-to-equity ratio for the Group is not applicable as the Group is in net cash position. There was no change in the Group9s approach to capital management during the financial year. (b) Financial risk management The Group has exposures to the following risks from its use of financial instruments: i) Credit risk ii) Liquidity risk iii) Interest rate risk i) Credit risk Credit risk is the risk of a financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group9s and the Company9s exposure to credit risk arises principally from its outstanding balances from customers and loans and advances to its subsidiaries. There are no significant changes as compared to prior periods. ANNUAL REPORT 2024 HOLDINGS BERHAD Financial Statements (continued) 140
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