amounts recognised RM’million Gross amounts set-off in the SOFP RM’million Net amounts presented in the SOFP RM’million Financial assets 2023 Amounts due from associates 388.3 0 388.3 5.2 0 5.2 Amounts due from subsidiaries 0 0 0 11,033.6 (3,056.0) 7,977.6 Amounts due from joint ventures 22.7 0 22.7 0 0 0 2022 Amounts due from associates 659.1 0 659.1 5.6 0 5.6 Amounts due from subsidiaries 0 0 0 12,701.0 (2,684.1) 10,016.9 Amounts due from joint ventures 44.6 0 44.6 0 0 0 Financial liabilities 2023 Amounts due to associates (579.7) 0 (579.7) (568.8) 0 (568.8) Amounts due to subsidiaries 0 0 0 (10,000.0) 3,056.0 (6,944.0) 2022 Amounts due to associates (777.6) 0 (777.6) (765.9) 0 (765.9) Amounts due to subsidiaries 0 0 0 (9,393.2) 2,684.1 (6,709.1) 46 CAPITALRISK MANAGEMENT The Group’s and the Company’s main objective of capital management is to safeguard the Group’s and the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders. The Group and the Company will also strive to maintain an optimal capital structure to reduce the cost of capital. For the purpose of sustaining or changing the capital structure, the Group and the Company may adjust the amount of dividends paid to shareholders, issue new shares or return capital to shareholders. In order to be consistent with industry norms, the Group and the Company monitor its capital structure on the basis of the gearing ratio. This ratio is calculated as total borrowings divided by capital employed. T otal borrowings include non-current borrowings and current borrowings as shown in the consolidated statement of financial position. Capital employed is the summation of total equity and total borrowings. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 337 46 CAPITAL RISK MANAGEMENT (CONTINUED) The gearing ratios are as follows: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million T otal borrowings (Note 26) 61,770.2 63,882.2 29,678.1