64 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) 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 2021, the Group had complied with all external financial covenants. The Group will continue to monitor and assess the compliance with the financial covenants for all borrowings on a regular basis. Company 2021 2020 RM’000 RM’000 Loans due to ultimate holding company 634,665 886,188 Loans due to subsidiaries 806,789 1,405,459 Borrowings 496,451 75,080 Total debt 1,937,905 2,366,727 Total equity 7,429,561 7,268,826 Total capital 9,367,466 9,635,553 Gearing ratio 26% 33% There is no financial covenants imposed for the Company. (c) Fair value estimation Amounts that are measured in the statement of financial position at fair value are disclosed by the following fair value measurement hierarchy: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). • Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
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