Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 132 34. Capital management The Group objectives when managing capital is to maintain a strong capital base and safeguard the Group’s 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 debt-to-equity ratio that complies with debt covenants and regulatory requirements. The Group’s strategy is to maintain the debt-to-equity ratio not exceeding 2.00 times. The debt-to-equity ratio at the end of reporting period/year is as follows: Group 30.6.2021 31.12.2019 RM’000 RM’000 Total loans and borrowings (Note 21) 3,939,954 3,339,527 Finance lease liabilities (Note 20) 15,201 11,899 Less: Cash and cash equivalents (Note 17) (497,412) (1,306,590) Less: Other investments (Note 10) (53,191) (51,172) Net debt 3,404,552 1,993,664 Total equity 2,969,302 2,439,885 Net debt-to-equity ratios 1.15 0.82 There was no change in the Group’s approach to capital management during the financial period. The Group’s maintaining a maximum debt-to-equity ratio of 2.00 is also to comply with bank covenants, failing which, the banks may call an event of default. The Group did not breached this covenant during and as at the financial period end (see Note 21).