4 CAPITAL MANAGEMENT
The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and health
capital ratios in order to support its business, maximise shareholder value and comply with its financial covenants.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To
maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares.
The Group monitors capital using a gross gearing ratio, which is total borrowings divided by shareholders’ funds.
The Group’s gross gearing ratios as at 31 December 2015 and 2014 were as follows:
Group
2015
RM’000
2014
RM’000
Current borrowings
359,149
915,921
Non-current borrowings
1,178,881
335,467
Total borrowings (Note 29)
1,538,030
1,251,388
Shareholders’ fund
1,471,583
1,259,360
Gross gearing ratio (%)
1.05
0.99
The Group has complied with all material external financial covenants during the financial year as disclosed in Note 29.
264
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
