Section 8 UEM Edgenta Berhad FINANCIAL STATEMENTS 364 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 41. 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. Group On demand or within one year RM’000 One to five years RM’000 More than five years RM’000 Total RM’000 2023 Financial liabilities: Trade and other payables 689,107 6,548 - 695,655 Lease liabilities 14,515 18,169 2,478 35,162 Loans and borrowings: - IMTNs - 288,341 - 288,341 - Revolving credit 137,803 - - 137,803 - Term loans 42,210 70,032 - 112,242 Total undiscounted financial liabilities 883,635 383,090 2,478 1,269,203
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