Dagang NeXchange Berhad Annual Report 2019

FINANCIAL STATEMENTS annual report 2019 181 30. FINANCIAL INSTRUMENTS (CONTINUED) 30.7 Fair value information (continued) Level 2 fair value Non-derivative financial liabilities Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the end of the reporting period. Transfers between Level 1 and Level 2 fair values There has been no transfer between Level 1 and 2 fair values during the financial year (2018: no transfer in either directions). 31. CAPITAL MANAGEMENT The Group’s 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 debt-to-equity ratio at the end of the reporting period are as follows: Group 2019 2018 RM’000 RM’000 Total loans and borrowings 66,269 47,575 Lease liabilities 5,827 - Less: Cash and cash equivalents (Page 110) (27,392) (19,670) Net debt 44,704 27,905 Total equity 465,366 441,510 Debt-to-equity ratio 0.10 0.06 There were no changes in the Group’s approach to capital management during the financial year. 32. COMMITMENTS Group 2019 2018 RM’000 RM’000 Capital commitments: Property, plant and equipment Authorised and contracted for within one year 18 7,825