39. FINANCIAL RISK MANAGEMENT POLICIES (CONT’D.) The policies in respect of the major areas of treasury activities are as follows: (cont’d.) (c) Liquidity and cash flow risk (cont’d.) Less than Over 1 year 1-2 years 2-5 years 5 years Company RM’million RM’million RM’million RM’million At 31 December 2021 Trade and other payables 8 – – – Amounts due to subsidiaries 213 – – – 221 – – – At 31 December 2020 Trade and other payables 7 – – – Amounts due to subsidiaries 462 – – – Less than Over 1 year 1-2 years 2-5 years 5 years Group RM’million RM’million RM’million RM’million At 31 December 2021 Net-settled derivatives Trading – – – – Hedging – – – 688 At 31 December 2020 Net-settled derivatives Trading – – – 65 Hedging 115 – – – (d) Capital risk management The Group’s and the Company’s objectives when managing capital are to safeguard the Group’s and the Company’s ability to continue as a going concern and to maintain an optimal capital structure so as to provide returns for shareholders and benefits for other stakeholders. In order to optimise the capital structure, or the capital allocation amongst the Group’s and the Company’s various businesses, the Group and the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, take on new debts or sell assets to reduce debt. The Group’s and the Company’s overall strategy remains unchanged from 2019. Consistent with others in the industry, the Group and the Company monitors capital utilisation on the basis of the net gearing ratio. This net gearing ratio is calculated as net debts divided by total equity. Net debts are calculated as total borrowings (including “short-term and long-term borrowings” as shown in the Group’s and the Company’s balance sheet) add lease liabilities less deposit, cash and bank balances. 3 0 6 Notes to the Financial Statements (cont’d.) for the financial year ended 31 December 2021 C A P I T A L A B E R H A D
RkJQdWJsaXNoZXIy ODU0MjU5