FGV HOLDINGS BERHAD | AUDITED FINANCIAL STATEMENTS 2023 73 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (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 2023 and 31 December 2022. The Group considers its debts and total equity as capital and monitors capital using a gearing ratio, which is total debt divided by total equity. The Group includes borrowings, loans due to ultimate holding company and LLA liability within its total debt while loans due to subsidiaries are additionally included for the Company’s total debt. Total equity includes share capital, reserves, retained earnings and non-controlling interests. The gearing ratio analysis for the Group and the Company are as disclosed below: Group With LLA liability 2023 RM’000 2022 RM’000 Borrowings 3,432,802 2,725,644 Loans due to ultimate holding company - 333,316 LLA liability 3,513,813 3,680,354 Total debt 6,946,615 6,739,314 Total equity 7,581,980 7,884,685 Total capital with LLA liability 14,528,595 14,623,999 Gearing ratio 92% 85%
RkJQdWJsaXNoZXIy NDgzMzc=