166
ANNUAL REPORT 2016
NOTES TOTHE FINANCIAL STATEMENTS
30 JUNE 2016
(Continued)
37. FINANCIAL INSTRUMENTS (continued)
(a)
Capital management (continued)
Group
Company
2016
RM’000
2015
RM’000
2016
RM’000
2015
RM’000
Borrowings
154,661
143,086
19,750
12,321
Less: Cash and bank balances
(103,159)
(78,775)
(2,959)
(1,110)
51,502
64,311
16,791
11,211
Total capital
406,234
387,516
209,765
210,728
Gearing ratio
(1)
38%
37%
9%
6%
Net gearing ratio
(2)
13%
17%
8%
5%
(1)
without taking cash and bank balances into consideration
(2)
taking cash and bank balances into consideration
The Group will continue to be guided by prudent financial policies of which gearing is an important aspect.
Pursuant to Practice Note No. 17/2005 issued by Bursa Malaysia Securities Berhad, the Group is required to maintain a consolidated
shareholders’ equity equal to or not less than the twenty-five percent (25%) of the issued and paid-up capital (excluding treasury
shares) and such shareholders’ equity is not less than RM40.0 million. The Company has complied with this requirement for the
financial year ended 30 June 2016.
The Group is not subject to any other externally imposed capital requirements.
(b)
Financial instruments
Group
2016
Loans and
receivables
RM’000
Available-
for-sale
RM’000
Total
RM’000
Financial assets
Other investments
-
1,298
1,298
Trade and other receivables, net of prepayments
112,272
-
112,272
Cash and bank balances
103,159
-
103,159
215,431
1,298
216,729
Other
financial liabilities
RM’000
Total
RM’000
Financial liabilities
Borrowings
154,661
154,661
Trade and other payables
115,602
115,602
270,263
270,263
