ANNUAL REPORT 2024 FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024 FINANCIAL STATEMENTS NOTES TO THE 199 49. FINANCIAL INSTRUMENTS (CONT’D) 49.2 CAPITAL RISK MANAGEMENT The Group manages its capital to ensure that entities within the Group will be able to maintain an optimal capital structure so as to support its businesses and maximise shareholders value. To achieve this objective, the Group may make adjustments to the capital structure in view of changes in economic conditions, such as adjusting the amount of dividend payment, returning of capital to shareholders or issuing new shares. The Group manages its capital based on debt-to-equity ratio that complies with debt covenants and regulatory requirements, if any. The debt-to-equity ratio is calculated as total borrowings divided by total equity. The Group includes within total borrowings, loans and borrowings from financial institutions. Capital includes equity attributable to the owners of the parent and non-controlling interest. The debt-to-equity ratio of the Group at the end of the financial year is as follows:- Group 2024 2023 RM’000 RM’000 Trade financing (Note 32) 40,196 34,307 Term financing (Note 26) 496 1,943 Term loans (Note 25) 17,694 21,828 Lease liabilities (Note 27) 863 1,258 Hire purchase payables (Note 28) 571 - Total borrowings 59,820 59,336 Total equity 367,274 360,390 Debt-to-equity ratio 0.16 0.16 There was no change in the Group’s approach to capital management during the financial year. The Company manage its capital based on debt-to-equity ratio. The debt-to-equity ratio of the Company at the end of the reporting period is not presented as its cash and cash equivalents exceeded the total external borrowings.
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