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notes to the financial statements (cont’d)
for the financial year ended 30 June 2014
JAYA TIASA HOLDINGS BERHAD
124
37. Capital management
The primary objective of the Group and the Company’s capital management is to ensure that it maintains healthy
capital ratios to support its business and maximise shareholder value. No changes were made in the objective,
policies and processes during the year ended 30 June 2014 and 2013.
The Group reviews its capital structure and makes adjustments to reflect economic conditions, business strategies
and future commitments on a continuous basis.
The Group monitors capital using a gearing ratio which is net debt divided by total equity attributable to owners of
the parent plus net debt. The Group includes within net debt, loans and borrowings, less cash and bank balances.
Group
Company
Note
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Loans and borrowings
27
829,972
866,744
189,325
196,288
Less: Cash and bank balances
26
(29,752)
(81,037)
(5,164)
(55,405)
Net debt
800,220
785,707
184,161
140,883
Equity attributable to
owners of the parent
1,751,939
1,708,483
1,646,095
1,240,966
Capital and net debt
2,552,159
2,494,190
1,830,256
1,381,849
Gearing ratio
31%
32%
10%
10%
38. Segment information
For management purposes, the Group is organised into business units based on their products and services, and
has four reportable operating segments as follows:
i.
Logs Trading - extraction and sales of logs and development of planted forests;
ii.
Manufacturing - manufacturing and trading of sawn timber, plywood, veneer, blockboard and laminated wood;
iii.
Oil Palm - development of oil palm plantation and its related activities; and
iv.
Others - mainly comprise the provision of air transportation services and investment holding.
Except as indicated above, no operating segment has been aggregated to form the above reportable operating
segments.
Segmental operating results are reviewed on a regular basis by the Group’s key management personnel in order to
make decisions about resource allocation and performance assessment. Segment performance is evaluated based
on profit or loss before tax.
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with
third parties.
Segment analysis by geographical locations has not been presented as the Group’s operations are predominantly
conducted in Malaysia.