40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (a) Credit risk (cont’d.) Credit risk concentration profile The Group determines concentrations of credit risk by monitoring the industry sector profile of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the reporting date are as follows: 2021 2020 RM’000 % of total RM’000 % of total Group Property development and property management 248,670 88% 240,904 88% Property investment, recreation and resort 18,604 7% 23,650 8% Investment holding and others 14,524 5% 9,669 4% 281,798 100% 274,223 100% (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’s and the Company’s liquidity risk management policy is to maintain sufficient liquid financial assets and stand-by credit facilities with several banks so as to ensure that all operating, investing and financing needs are met. 40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (b) Liquidity risk (cont’d.) 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 to More than one year five years five years Total RM’000 RM’000 RM’000 RM’000 Group Financial liabilities 2021 Trade and other payables 1,140,889 337,598 222,893 1,701,380 Lease liabilities 3,722 7,950 2,056 13,728 ICPS 33,391 118,869 103,151 255,411 Borrowings 735,650 3,169,312 634,277 4,539,239 Total undiscounted financial liabilities 1,913,652 3,633,729 962,377 6,509,758 2020 Trade and other payables 1,136,994 288,412 276,046 1,701,452 Lease liabilities 2,936 4,871 2,477 10,284 ICPS 21,767 107,080 138,517 267,364 Borrowings 686,315 2,826,054 741,357 4,253,726 Total undiscounted financial liabilities 1,848,012 3,226,417 1,158,397 6,232,826 Company Financial liabilities 2021 Trade and other payables 279,318 – – 279,318 Lease liabilities 619 349 – 968 ICPS 33,391 118,869 103,151 255,411 Borrowings 216,089 1,632,750 258,366 2,107,205 Total undiscounted financial liabilities 529,417 1,751,968 361,517 2,642,902 2020 Trade and other payables 387,667 – – 387,667 Lease liabilities 648 349 – 997 ICPS 21,767 107,080 138,517 267,364 Borrowings 227,827 1,515,521 214,308 1,957,656 Total undiscounted financial liabilities 637,909 1,622,950 352,825 2,613,684 FINANCIAL STATEMENTS NOTES TO THE For the financial year ended 31 December 2021 Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 338 339
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