FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 188 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) Group (continued) Without LLA liability 2018 RM’000 2017 RM’000 Borrowings 4,244,111 4,110,156 Loans due to a significant shareholder 1,159,103 1,387,316 Total debt 5,403,214 5,497,472 Total equity 6,616,473 7,873,026 Total capital without LLA liability 12,019,687 13,370,498 Gearing ratio 82% 70% 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 2018, the Group had complied with all external financial covenants other than as disclosed in Note 45. The Group will continue to monitor and assess the compliance with the financial covenants for all borrowings on a regular basis. Company 2018 RM’000 2017 RM’000 Loans due to a significant shareholder 1,159,103 1,387,316 Loans due to subsidiaries 1,104,909 1,102,759 Borrowings 84,880 - Total debt 2,348,892 2,490,075 Total equity 7,210,152 7,065,799 Total capital 9,559,044 9,555,874 Gearing ratio 33% 35%