MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 244 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 48. FINANCIAL INSTRUMENTS (CONT’D) 48.2 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 their 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, if any. The debt-to-equity ratio is calculated as net debt divided by total equity. The Group includes within net debt, loans and borrowings from financial institutions less cash and cash equivalents. Capital includes equity attributable to the owners of the parent and non-controlling interest. The debt-toequity ratio of the Group at the end of the reporting period was as follows:- The Group 2021 2020 RM’000 RM’000 Lease liabilities 5,536 5,457 Term loans 106,307 128,010 Revolving credit 41,700 21,100 Block discounting 12,540 16,408 Trade payables 101,609 72,404 Other payables and accruals 67,488 26,428 Amount owing to associates 24 33 335,204 269,840 Less: Fixed deposits with licensed banks (16,165) (12,829) Less: Cash and bank balances (73,114) (221,784) Net debt 245,925 35,227 Total equity 1,541,449 1,142,823 Debt-to-equity ratio 0.16 0.03 There was no change in the Group’s approach to capital management during the financial year.
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