FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 180 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) Group (continued) Without LLA liability 2017 RM’000 2016 RM’000 Borrowings 4,110,156 3,891,132 Loans due to a significant shareholder 1,387,316 1,689,005 Total debt 5,497,472 5,580,137 Total equity 7,860,035 8,197,541 Total capital without LLA liability 13,357,507 13,777,678 Gearing ratio 70% 68% 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. As at 31 December 2017, the Group had complied with all external financial covenants other than as disclosed in Note 42. The Group will continue to monitor and assess the compliance with the financial covenants for all borrowings on a regular basis. Company 2017 RM’000 2016 RM’000 Loans due to a significant shareholder 1,387,316 1,689,005 Loans due to subsidiaries 1,102,759 301,005 Borrowings - 540,900 Total debt 2,490,075 2,530,910 Total equity 7,065,799 7,164,097 Total capital 9,555,874 9,695,007 Gearing ratio 35% 35%