4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) The gearing ratio analysis for the Group and the Company is as disclosed below: Group With LLA liability 2024 RM’000 2023 RM’000 Borrowings 3,747,635 3,432,802 LLA liability 3,663,487 3,513,813 Total debt 7,411,122 6,946,615 Total equity 6,104,288 5,971,915 Total capital with LLA liability 13,515,410 12,918,530 Gearing ratio 121% 116% Without LLA liability 2024 RM’000 2023 RM’000 Borrowings 3,747,635 3,432,802 Total debt 3,747,635 3,432,802 Total equity 6,104,288 5,971,915 Total capital without LLA liability 9,851,923 9,404,717 Gearing ratio 61% 57% 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. MSM Malaysia Holdings Berhad (“MSMH”), a subsidiary of the Company would have not complied with one of the financial covenants for its Islamic term loan. MSMH has received a Supplemental Letter dated 18 December 2024 from the lender granting the waiver on the one out of three financial covenants i.e. consolidated net debt and financing to EBITDA for the financial year ended 31 December 2024. MSMH will continue to monitor the compliance of the financial covenants and will engage the lenders as and when required. FGV Holdings Berhad | Audited Financial Statements 2024 Notes to the Financial Statements For the financial year ended 31 December 2024 66
RkJQdWJsaXNoZXIy NDgzMzc=