4 FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Financial risk management policies (continued) Liquidity risk (continued) Company Less than 1 year RM’000 Between 1 and 2 years RM’000 Between 2 and 5 years RM’000 Over 5 years RM’000 Total RM’000 At 31 December 2024 Loans due to a subsidiary 156,369 10,346 31,090 206,422 404,227 Amounts due to subsidiaries 14,642 – – – 14,642 Amounts due to other related companies 264 – – – 264 Borrowings 172,588 192,760 866,892 388,294 1,620,534 Lease liabilities 6,080 6,080 3,547 – 15,707 Payables 66,131 – – – 66,131 Total undiscounted financial liabilities 416,074 209,186 901,529 594,716 2,121,505 At 31 December 2023 Loans due to a subsidiary 348,734 108,326 302,600 434,200 1,193,860 Amounts due to subsidiaries 8,824 – – – 8,824 Amounts due to other related companies 97 – – – 97 Borrowings 153,078 144,845 716,785 79,247 1,093,955 Lease liabilities 5,758 6,080 9,627 – 21,465 Payables 51,862 – – – 51,862 Total undiscounted financial liabilities 568,353 259,251 1,029,012 513,447 2,370,063 (b) Capital risk management policies The Group’s primary objectives on capital management policies are to safeguard the Group’s ability to maintain healthy capital ratios to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return of capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the financial year ended 31 December 2024 and 31 December 2023. The Group considers its debts and total equity as capital and monitors capital using a gearing ratio, which is total debt divided by total equity. The Group includes borrowings and LLA liability within its total debt while loans due to subsidiaries are additionally included for the Company’s total debt. Total equity includes share capital, reserves and retained earnings. Notes to the Financial Statements For the financial year ended 31 December 2024 65
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