Tropicana Corporation Berhad Annual Report 2019

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (b) Liquidity risk Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group’s and the Company’s liquidity risk management policy is to maintain sufficient liquid financial assets and stand-by credit facilities with several banks so as to ensure that all operating, investing and financing needs are met. Analysis of financial instruments by remaining contractual maturities The table below summarises the maturity profile of the Group’s and the Company’s liabilities at the reporting date based on contractual undiscounted repayment obligations. On demand or within One to More than one year five years five years Total RM’000 RM’000 RM’000 RM’000 Group Financial liabilities 2019 Trade and other payables 1,791,133 254,105 216,479 2,261,717 Lease liabilities 3,484 1,925 2,876 8,285 ICPS 11,789 123,780 141,464 277,033 Borrowings 1,078,314 1,308,442 568,826 2,955,582 Total undiscounted financial liabilities 2,884,720 1,688,252 929,645 5,502,617 2018 Trade and other payables 1,406,732 253,342 523,210 2,183,284 Borrowings 740,535 1,104,312 469,048 2,313,895 Total undiscounted financial liabilities 2,147,267 1,357,654 992,258 4,497,179 Company Financial liabilities 2019 Trade and other payables 299,856 – – 299,856 Lease liabilities 957 306 – 1,263 ICPS 11,789 123,780 141,464 277,033 Borrowings 218,043 140,893 – 358,936 Total undiscounted financial liabilities 530,645 264,979 141,464 937,088 2018 Trade and other payables 196,581 – – 196,581 Borrowings 285,228 185,881 – 471,109 Total undiscounted financial liabilities 481,809 185,881 – 667,690 For the financial year ended 31 December 2019 Notes to the Financial Statements Tropicana Corporation Berhad Annual Report 2019 pg 240 About Tropicana Our Strategic Performance Our Leadership