66 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2022 4 FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Capital risk management policies (continued) Group (continued) Without LLA liability 2022 RM’000 2021 RM’000 Borrowings 2,725,644 3,363,497 Loans due to ultimate holding company 333,316 634,665 Total debt 3,058,960 3,998,162 Total equity 7,884,685 7,186,518 Total capital without LLA liability 10,943,645 11,184,680 Gearing ratio 39% 56% 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. MSM Malaysia Holdings Berhad (“MSMH”), a subsidiary of the Company had received a waiver letter dated 8 November 2022 from the lender granting a waiver on one of the financial covenants for the financial year ended 31 December 2022 and therefore was not required to meet this covenant. MSMH has complied with the other of the financial covenants for the year ended 31 December 2022. Company 2022 RM’000 2021 RM’000 Loans due to ultimate holding company 333,316 634,665 Loans due to subsidiaries 811,034 806,789 Borrowings 497,374 496,451 Total debt 1,641,724 1,937,905 Total equity 7,545,786 7,429,561 Total capital 9,187,510 9,367,466 Gearing ratio 22% 26% There is no financial covenants imposed for the Company.
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