FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 211 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) Group (continued) Without LLA liability 2016 RM'000 2015 RM'000 (Restated) Borrowings 3,891,132 3,550,419 Loans due to a significant shareholder 1,689,005 1,893,290 Total debt 5,580,137 5,443,709 Equity attributable to owners of the Company 5,794,375 5,827,303 Gearing ratio 96% 93% The increase in the gearing ratio during the financial year ended 31 December 2016 resulted primarily from net increase in borrowings for working capital requirements. Company 2016 RM'000 2015 RM'000 Loans due to a significant shareholder 1,689,005 1,893,290 Loans due to subsidiaries 301,005 833,129 Borrowings 540,900 - Total debt 2,530,910 2,726,419─ Total equity 7,164,097 7,309,398 Gearing ratio 35% 37% (c) Fair value estimation Amounts that are measured in the statement of financial position at fair value are disclosed by the following fair value measurement hierarchy: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1). • Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2). • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).