FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 217 4 FINANCIAL RISK MANAGEMENT (Cont’d.) (b) Capital risk management policies The gearing ratio analysis for the Group and the Company are as disclosed below: Group With LLA liability 2013 2012 RM’000 RM’000 Borrowings 1,649,910 599,669 Loan due to a significant shareholder 2,697,790 1,840,271 LLA liability 4,844,390 5,664,769 Total debt 9,192,090 8,104,709 Equity attributable to owners of the Company 6,571,008 6,102,364 Gearing ratio 140% 133% The increase in the gearing ratio during the financial year ended 31 December 2013 resulted primarily from the additional loan obtained from a significant shareholder amounting to RM1,067,400,000 for the acquisition of Felda Holdings Bhd. (“FHB”). 2013 2012 RM’000 RM’000 Borrowings 1,649,910 599,669 Loan due to a significant shareholder 2,697,790 1,840,271 Total debt 4,347,700 2,439,940 Equity attributable to owners of the Company 6,571,008 6,102,364 Gearing ratio 66% 40% Company 2013 2012 RM’000 RM’000 Loan due to a significant shareholder 2,697,790 1,840,271 Total equity 7,378,570 7,296,182 Gearing ratio 37% 25%