Serba Dinamik Annual Report 2021

Section 5 | Management Discussion & Analysis 164 FINANCING & LIQUIDITY The Group’s total borrowings as at FPE2021 amounted to RM3.94 billion as compared to RM3.34 billion in FYE2019. The substantial increase is mainly from new syndication loan in respect of acquisition of TR Yard in order to finance the acquisition and up-sizing of existing syndication loan for working capital purposes. In FYE2019, the Group short-term borrowings were recorded at RM400.90 million accounted for 12.00% meanwhile in FPE2021, our short-term borrowing has accounted for RM1,648.56 million or 41.84% of the total borrowings in relation to upcoming maturity of Sukuk loan (current portion which will be due in May of 2022). 2016* 2017 2018 2019 2021 ^ RM Millions 16,230,000 623,430,000 24,760,000 681,280,000 1,107,504,517 603,951,024 2,938,623,786 400,902,459 2,291,390,449 1,648,563,508 Financing 399,861,278 35,011,000 356,793,000 33,936,000 950,664,041 49,587,736 2,032,935,607 181,250,745 3,442,542,079 296,455,697 Short Term Borrowings Long Term Borrowings Net Finance Cost Net Borrowings The Group’s financial leverage slightly reduce in term of gross gearing ratio from 1.37 in FYE2019 to 1.33 in FPE2021. This is mainly due to the Company has completed the private placement exercise during the year, in which the Company has issued 306,507,000 new shares with an issue price of RM1.49 per placement share on 5 May 2020 and another private placement in which the company has issued 336,830,000 new share with an issue price of RM1.51 per placement share on 3 February 2021 hence resulting to a slightly improved gross gearing ratio. However, net gearing ratio slightly increased to 1.16 in FPE2021 from 0.83 FYE2019. The current ratio of the Group decreased from 4.28 times in FYE2019 to 2.00 times in FPE2021 which was mainly due to increase in short-term borrowing which comprised of the upcoming maturity of Sukuk loan in May of 2022 which resulted the current liabilities to increase. 2016* 2017 2018 2019 2021 ^ RM Millions Cash and cash equivalents Current Ratio Gross Gearing Net Gearing 497.41 760.79 300.78 1,306.59 187.35 1.16 0.45 0.26 0.81 0.49 1.33 0.82 0.51 1.37 0.78 2.00 2.57 1.63 4.28 1.30 Financial Leverage & Liquidity FINANCIAL PERFORMANCE * The figures and values for 2016 in this section represent that performance of Serba Dinamik Group Berhad, in order to reflect the performance of the Group prior to the incorporation of Serba Dinamik Holdings Berhad and the subsequent acquisition of Serba Dinamik Group Berhad on 26 May 2016. For further information please refer to our IPO prospectus available on our corporate website. ^ On 07 May 2021, the Group announced the change of financial year end for the Company and its subsidiaries from 31 December 2020 to 30 June 2021. The audited financial statements is for a period of eighteen (18) months, made up from 1 January 2020 to 30 June 2021.