2020 UEM Edgenta Annual Report

40. CAPITAL MANAGEMENT The primary objective of the Group’s and of the Company’s capital management is to ensure that they maintain a strong credit rating and healthy capital ratios in order to support their business and maximise shareholder value. The Group and the Company also aim to maintain a capital structure that has an appropriate cost of capital available to the Group and the Company. The Group and the Company manage their capital structure and makes 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 years ended 31 December 2020 and 31 December 2019. The Group and the Company manage capital by reference to the debt to asset ratio. The Group’s and the Company’s debt to asset ratio is as follows: Group Company RM’000 2020 2019 2020 2019 Murabahah Term Facility 38,089 69,735 – – Term loans 78,949 86,751 – – Revolving credit 64,057 60,742 – – ICPs 50,000 50,000 50,000 50,000 IMTNs 252,059 251,840 252,059 251,840 Lease liabilities 37,575 30,277 31,557 23,553 Total debt 520,729 549,345 333,616 325,393 Total assets 2,807,353 2,912,816 1,987,497 2,116,633 Debt to asset ratio 19% 19% 17% 15% UEM EDGENTA BERHAD 296 Financial Statements NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2020