Wah Seong Corporation Berhad Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 FINANCIAL STATEMENTS WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 187 46 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Liquidity risk Liquidity risk is the risk that the Group or the Company will not be able to meet its financial obligations as they fall due. The Group’s and the Company’s exposure to liquidity risk arises principally from its payables and borrowings. The Group and the Company maintain a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they fall due. As at 31 December 2017, there are facilities available together with new facility which the Group and the Company is pursuing, that can be used to part refinance borrowings, capital expenditure and general working capital requirements of the Group and the Company. All financial liabilities of the Group and the Company that will be due and payable within the next 12 months are classified within current liabilities. The contractual cash flows of derivative financial liabilities and non-derivative financial liabilities are presented below: Group Within 1 year RM’000 More than 1 year and less than 2 years RM’000 More than 2 years and less than 5 years RM’000 Total contractual undiscounted cash flows RM’000 Total carrying amount RM’000 2017 Non-derivative financial liabilities Trade and other payables 532,833 209 - 533,042 533,042 Amounts owing to associates 175 - - 175 175 Amounts owing to joint ventures 3,314 - - 3,314 3,314 Loans and borrowings 801,555 179,036 31,725 1,012,316 976,523 Dividend payable 13,685 - - 13,685 13,685 1,351,562 179,245 31,725 1,562,532 1,526,739 2016 Non-derivative financial liabilities Trade and other payables 329,545 - - 329,545 329,545 Amounts owing to joint ventures 2,977 - - 2,977 2,977 Loans and borrowings 1,272,567 - - 1,272,567 1,231,501 Dividend payable 13,808 - - 13,808 13,808 1,618,897 - - 1,618,897 1,577,831