FGV Annual Report 2014

4 Financial Risk Management (continued) (a) Financial risk management policies (continued) Liquidity risk (continued) 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 2014 Loans due to a significant shareholder 322,155 308,264 860,710 1,326,218 2,817,347 Amounts due to subsidiaries 134,011 – – – 134,011 Amount due to a significant shareholder 6,623 – – – 6,623 Amounts due to other related companies 354 – – – 354 Payables 52,642 – – – 52,642 Total undiscounted financial liabilities 515,785 308,264 860,710 1,326,218 3,010,977 At 31 December 2013 Loans 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 (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 2014 and 31 December 2013. 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, loans 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. Felda Global Ventures Holdings Berhad pg 206 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2014