FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 216 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 4 FINANCIAL RISK MANAGEMENT (Cont’d.) (a) Financial risk management policies (Cont’d.) Liquidity risk (Cont’d.) Less than Between 1 Between 2 Over 1 year and 2 years and 5 years 5 years Total Company RM’000 RM’000 RM’000 RM’000 RM’000 At 31 December 2013 Loan due to a significant shareholder 343,916 333,236 935,628 1,908,881 3,521,661 Amounts due to subsidiaries 88,734 - - - 88,734 Amount due to a significant shareholder 3,833 - - - 3,833 Amounts due to other related companies 563 - - - 563 Payables 19,705 - - - 19,705 Financial guarantee contract 26,952 - - - 26,952 Total undiscounted financial liabilities 483,703 333,236 935,628 1,908,881 3,661,448 At 31 December 2012 Loan due to a significant shareholder 297,694 359,607 780,738 797,615 2,235,654 Amounts due to subsidiaries 78,676 - - - 78,676 Amount due to an associate 69,510 - - - 69,510 Amount due to a significant shareholder 66 - - - 66 Amounts due to other related companies 1,430 - - - 1,430 Payables 32,235 - - - 32,235 Financial guarantee contract - 10,458 10,458 10,458 31,374 Total undiscounted financial liabilities 479,611 370,065 791,196 808,073 2,448,945 (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 capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the financial year ended 31 December 2013 and 31 December 2012. The Group monitors capital using a gearing ratio, which is total debt divided by total equity attributable to owners of the Company. The Group includes borrowings, loan due to a significant shareholder and LLA liability within its total debt. Equity attributable to owners of the Company includes share capital, redeemable preference shares, share premium, reserves and retained earnings.