ANNUAL REPORT 2016
82
Techno
Dex
Berhad
(627634-A)
34. FINANCIAL INSTRUMENTS (continued)
34.1 FINANCIAL RISK MANAGEMENT POLICIES (continued)
(c) Liquidity Risk (continued)
On demand
or within Two to five
one year
years
Total
The Company
RM RM RM
2016
Other payables and accruals
397,564
-
397,564
Total undiscounted financial liabilities
397,564
-
397,564
2015
Other payables and accruals
495,230
-
495,230
Total undiscounted financial liabilities
495,230
-
495,230
34.2 CAPITAL RISK MANAGEMENT
The Group manages its capital to ensure that entities within the Group will be able to maintain an optimal capital
structure so as to support their businesses and maximise shareholder(s) value. To achieve this objective, the
Group may make adjustments to the capital structure in view of changes in economic conditions, such as
adjusting the amount of dividend payment, returning of capital to shareholders or issuing new shares.
The Group manages its capital based on debt-to-equity ratio that complies with debt covenants and
regulatory, if any. The debt-to-equity ratio is calculated as total borrowings from financial institutions divided
by total equity.
There was no change in the Group’s approach to capital management during the financial year.
The debt-to-equity ratio of the Group at the end of the reporting period was as follows:-
The Group
2016
2015
RM
RM
Trade payables
186,701
373,288
Other payables and accruals
1,806,336
1,633,305
Hire purchase payables
173,755
865,237
2,166,792
2,871,830
Less: Fixed deposits with licensed banks
(600,000)
(4,324,366)
Less: Cash and bank balances
(4,293,529)
(1,984,167)
Net debt
(2,726,737)
(3,436,703)
Total equity
30,301,192
26,727,381
Debt-to-equity ratio
(0.09)
(0.13)
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
