30.
FINANCIAL RISK MANAGEMENT (CONT'D)
30.4
Foreign currency risk (cont'd)
Sensitivity analysis for foreign currency risk (cont'd)
GROUP
2014
2013
RM
RM
USD
(588,638)
(247,171)
SGD
(78,074)
(9,729)
Decrease in profit before taxation
(666,712)
(256,900)
31.
CAPITAL MANAGEMENT
The Group’s objectives of managing capital are to safeguard the Group’s ability to continue its operations
as a going concern in order to maintain an optimal capital structure to reduce the cost of capital. In order to
maintain the optimal capital structure, the Group may, from time to time, issue new shares, redeem debts
or sell assets to reduce debts, where necessary.
Debt-to-Equity ratio
GROUP
2014
2013
RM
RM
Borrowings
188,408
6,695,274
Less: Cash and cash equivalents
(8,382,388)
(4,898,974)
(8,193,980)
1,796,300
Total equity
62,942,013
56,878,917
Debt-to-equity ratio
N/A
(i)
0.03
(i) N/A –Not applicable as net cash position
There were no changes in the Group’s approach to capital management during the year and the Group is
not subject to any externally imposed capital requirements by its lenders.
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2014 (CONT’D)
Pentamaster Corporation Berhad
(572307-U)
•
Annual Report 2014
88
