Yinson Annual Report 2019

Yinson Holdings Berhad ANNUAL REPORT 2019 202 42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (c) Liquidity risk Liquidity risk is the risk that the Group and the Company will encounter difficulty in meeting financial obligations due to shortage of funds. TheGroup’s and theCompany’s exposure to liquidity risk arises primarily frommismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective are to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans and perpetual securities. The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities based on contractual undiscounted repayment obligations. On demand or within One to Over five one year five years years Total Group RM’000 RM’000 RM’000 RM’000 31 January 2019 Trade and other payables 379,826 144,117 211,227 735,170 Loans and borrowings 419,474 1,415,591 1,395,367 3,230,432 Derivatives 3,082 36,358 – 39,440 Put option liability – – 455,725 455,725 Total undiscounted financial liabilities 802,382 1,596,066 2,062,319 4,460,767 31 January 2018 Trade and other payables 331,693 135,604 226,179 693,476 Loans and borrowings 389,518 1,119,159 1,594,199 3,102,876 Derivatives 3,813 42,349 – 46,162 Total undiscounted financial liabilities 725,024 1,297,112 1,820,378 3,842,514 Company 31 January 2019 Trade and other payables 6,104 584,382 – 590,486 Loans and borrowings 45,867 – – 45,867 Financial guarantee ^ 515,734 – – 515,734 Total undiscounted financial liabilities 567,705 584,382 – 1,152,087 31 January 2018 Trade and other payables 6,350 382,981 – 389,331 Loans and borrowings 22,430 75 – 22,505 Financial guarantee ^ 3,083,337 – – 3,083,337 Total undiscounted financial liabilities 3,112,117 383,056 – 3,495,173 ^ Themaximumamount of the financial guarantees issued to the banks for subsidiaries’ borrowings is limited to the amount utilised by the subsidiaries. The earliest period any of the financial guarantees can be called upon by banks is within the next 12 months. The Company believes that the liquidity risk in respect of the financial guarantees is minimal as it is unlikely that the subsidiaries will not make payment to the banks when due. For the financial year ended 31 January 2019 Notes to the financial statements (cont’d)