Tropicana Corporation Berhad Annual Report 2022

46. CAPITAL MANAGEMENT The primary objective of the Group’s and of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholders’ value. The Group and the Company manage their capital structure and make 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 financial years ended 31 December 2022 and 31 December 2021. The Group and the Company monitor capital using a gearing ratio, which is net debt divided by total equity. The Group and the Company include within net debt, loans and borrowings less cash and bank balances. Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Borrowings (Note 32) 3,772,965 3,915,803 1,755,290 1,823,014 Less: Cash and bank balances (Note 26) (649,884) (638,603) (199,198) (46,548) Net debt 3,123,081 3,277,200 1,556,092 1,776,466 Total equity 5,755,011 5,984,117 4,037,386 3,888,106 Gearing ratio 0.54 0.55 0.39 0.46 The gearing ratio is not governed by the MFRS and its definition and calculation may vary from one group/company to another. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 284 ANNUAL REPORT 2022

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