UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 287 286 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS FINANCIAL STATEMENTS 39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (a) Credit risk (contd.) Trade receivables and contract assets (contd.) Exposure to credit risk The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 38. The Group does not hold collateral as security. Credit risk concentration profile The Group determines concentrations of credit risk by monitoring the country sector profile of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s net trade receivables at the reporting date are as follows: 2021 2020 RM’000 % of total RM’000 % of total By country: Malaysia 268,859 61 190,212 56 United Arab Emirates 18,304 4 16,844 5 Indonesia 4,948 1 7,765 2 Singapore 66,691 15 60,847 18 Taiwan 82,035 19 66,815 20 440,837 100 342,483 100 At the reporting date, the Group’s ten largest customers account for approximately 34% (2020: 28%) of total trade receivables. Majority of these customers are government, quasi-government agency and government linked organisations. 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 20. 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 20. 39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (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 2021 Financial liabilities: Trade and other payables (Note 28) 727,740 10,765 - 738,505 Lease liabilities 9,342 26,603 170 36,115 Loans and borrowings: - IMTNs 252,184 - - 252,184 - Revolving credit 119,948 - - 119,948 - Term loans 13,294 51,922 12,434 77,650 Total undiscounted financial liabilities 1,122,508 89,290 12,604 1,224,402
RkJQdWJsaXNoZXIy NDgzMzc=