2019 UEM Edgenta Annual Report

246 247 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (a) Credit risk (cont’d.) Trade receivables and contract assets (cont’d.) Financial assets that are neither past due nor impaired Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note 21. Deposits with banks and other financial institutions are placed with or entered into with reputable financial institutions or companies with high credit ratings and no history of default. Financial assets that are either past due or impaired Information regarding financial assets that are either past due or impaired is disclosed in Note 21. (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 manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that refinancing, repayment and funding needs are met. As part of its overall liquidity management, the Group maintains sufficient levels of cash or cash convertible investments to meet its working capital requirements. In addition, the Group strives to maintain available banking facilities at a reasonable level to its overall debt position. As far as possible, the Group raises committed funding from both capital markets and financial institutions and balances its portfolio with some short term funding so as to achieve overall cost effectiveness. 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 year RM’000 One to five years RM’000 More than five years RM’000 Total RM’000 Group 2019 Financial liabilities: Trade and other payables (Note 31) 671,942 1,612 - 673,554 Lease liabilities 12,305 19,498 547 32,350 Loans and borrowings: - Murabahah Term Facility 33,973 39,151 - 73,124 - ICPs 50,000 - - 50,000 - IMTNs 12,059 268,171 - 280,230 - Revolving credit 63,522 - - 63,522 - Term loans 13,530 54,120 39,183 106,833 Total undiscounted financial liabilities 857,331 382,552 39,730 1,279,613 42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (b) Liquidity risk (cont’d.) Analysis of financial instruments by remaining contractual maturities (cont’d.) 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. (cont’d.) On demand or within one year RM’000 One to five years RM’000 More than five years RM’000 Total RM’000 Group 2018 Financial liabilities: Trade and other payables (Note 31) 740,199 4,552 - 744,751 Loans and borrowings: - Murabahah Term Facility 35,800 73,819 - 109,619 - ICPs 50,000 - - 50,000 - IMTNs 12,125 280,296 - 292,421 - Term loans 44,918 54,709 53,192 152,819 - Finance leases 1,311 2,172 - 3,483 Total undiscounted financial liabilities 884,353 415,548 53,192 1,353,093 On demand or within one year RM’000 One to five years RM’000 More than five years RM’000 Total RM’000 Company 2019 Financial liabilities: Other payables (Note 31) 75,819 98,226 - 174,045 Lease liabilities 9,002 15,976 63 25,041 Loans and borrowings: - ICPs 50,000 - - 50,000 - IMTNs 12,059 268,171 - 280,230 Total undiscounted financial liabilities 146,880 382,373 63 529,316 2018 Financial liabilities: Other payables (Note 31) 59,561 93,976 - 153,537 Loans and borrowings: - ICPs 50,000 - - 50,000 - IMTNs 12,125 280,296 - 292,421 Total undiscounted financial liabilities 121,686 374,272 - 495,958