FGV Audited Financial Statements 2019

77 01 S E C T I O N NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 AUDITED FINANCIAL STATEMENTS 2019 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) Group (continued) Without LLA liability 2019 RM’000 2018 RM’000 (Restated) Borrowings 4,020,558 4,244,111 Loans due to a significant shareholder 886,498 1,159,103 Total debt 4,907,056 5,403,214 Total equity 6,100,300 6,603,781 Total capital without LLA liability 11,007,356 12,006,995 Gearing ratio 80% 82% The Group is required to comply with certain financial covenants for its major debts facilities, including: (i) consolidated net tangible position; (ii) consolidated net debt and financing to equity ratio; (iii) consolidated net debt and financing to earnings before interest, tax, depreciation and amortisation (“EBITDA”) ratio; and (iv) consolidated finance payment cover ratio. As at 31 December 2019, the Group had complied with all external financial covenants other than as disclosed in Note 44. The Group will continue to monitor and assess the compliance with the financial covenants for all borrowings on a regular basis. Company 2019 RM’000 2018 RM’000 (Restated) Loans due to a significant shareholder 886,498 1,159,103 Loans due to subsidiaries 1,477,112 1,104,909 Borrowings 75,080 84,880 Total debt 2,438,690 2,348,892 Total equity 7,129,966 7,209,517 Total capital 9,568,656 9,558,409 Gearing ratio 34% 33% There is no financial covenants imposed for the Company.