TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
125
NOTES TO THE FINANCIAL STATEMENTS
34. 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 ratios at 31 December 2014 and 31 December 2013 were as follows:
Group
Note
2014
2013
RM’000
RM’000
Total borrowings
18
1,412,740 1,451,674
Less: Other investments
9
(127,059)
(152,720)
Cash and cash equivalents
16
(341,522)
(312,574)
Net debt
944,159
986,380
Total equity attributable to owners of the Company
2,754,602 2,708,924
Net debt-to-equity ratios
0.34
0.36
There were no changes in the Group’s approach to capital management during the financial year.
The Group is also required to maintain certain debt-to-equity ratio to comply with debt covenants, failing which, an
event of default may be triggered. The Group has not breached these covenants.
35. Subsidiaries
The principal activities of the subsidiaries, their places of incorporation and the interest of the Company are shown
below:
Effective
ownership interest
Name
Principal activities
2014 2013
% %
Incorporated in Malaysia:
Agensi Pekerjaan Bijak Sdn. Bhd.
Provision of employment agency services
100
100
Auto Components Manufacturers Sdn. Bhd.
Property investment holding
100
100
Auto Infiniti Sdn. Bhd.
Trading of car air-conditioners
100
100
