'-" FINANCIAL#RISK#MANAGEMENT#OBJECTIVES#AND#POLICIES# The!Group!and!the!Company!are!exposed!to!financial!risks!arising!from!their!operations!and!the!use!of!financial!instruments'!The!key! financial!risks!include!credit!risk&!liquidity!risk&!interest!rate!risk!and!foreign!currency!risk' The!Board!of!Directors!reviews!and!agrees!policies!and!procedures!for!the!management!of!these!risks&!which!are!executed!by!the! Managing!Director.Chief!Financial!O2cer'!The!Board!Risk!Management!Committee!provides!independent!oversight!to!the!e(ectiveness! of!the!risk!management!process'! The!following!sections!provide!details!regarding!the!Group’s!and!the!Company’s!exposure!to!the!above-mentioned!financial!risks!and!the! objectives&!policies!and!processes!for!the!management!of!these!risks' (a) Credit!risk! Credit!risk!is!the!risk!of!loss!that!may!arise!on!outstanding!financial!instruments!should!a!counterparty!default!on!its!obligations'! The!Group’s!and!the!Company’s!exposure!to!credit!risk!arises!primarily!from!trade!and!other!receivables'!Credit!risks!with!respect!to! trade!receivables!are!limited!as!the!legal!title!to!the!properties!sold!remain!with!the!Group!until!the!purchase!consideration!is!fully! paid'!As!for!other!receivables&!the!credit!risk!is!minimised!via!dealing!with!counterparties!with!appropriate!credit&!payment!histories! and!other!relevant!information'!For!cash!and!bank!balances&!the!Group!and!the!Company!minimise!credit!risk!by!dealing!exclusively! with!reputable!financial!institutions' The!Group’s!objective!is!to!seek!continual!revenue!growth!while!minimising!losses!incurred!due!to!increased!credit!risk!exposure'! The!Group!trades!only!with!recognised!and!creditworthy!third!parties'!It!is!the!Group’s!policy!that!all!customers!who!wish!to!trade! on!credit!terms!are!subject!to!credit!verification!procedures'!In!addition&!receivable!balances!are!monitored!on!an!ongoing!basis!with! the!result!that!the!Group’s!exposure!to!bad!debts!is!not!significant'! Exposure!to!credit!risk At!the!reporting!date&!the!Group’s!and!the!Company’s!maximum!exposure!to!credit!risk!is!represented!by!the!carrying!amount!of! each!class!of!financial!assets!recognised!in!the!statements!of!financial!position'!If!necessary&!the!Group!may!obtain!collaterals!from! counter-parties!as!a!means!of!mitigating!losses!in!the!event!of!default' 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)! +"+$ +"++ RM’"""! 2!of!total! RM’""" 2!of!total Group Property!development!and!property!management #))%",,! ..2 $,#&0--! ,-3 Property!investment&!recreation!and!resort ##%'"(! (2 $"&$//! %3 Investment!holding!and!others (%$'' '2 $$&$1$! /3 #&+%,&# #""2 "#1&#-/! $##3 (b) Liquidity!risk Liquidity!risk!is!the!risk!that!the!Group!or!the!Company!will!encounter!di2culty!in!meeting!financial!obligations!due!to!shortage! of!funds'!The!Group’s!and!the!Company’s!exposure!to!liquidity!risk!arises!primarily!from!mismatches!of!the!maturities!of!financial! assets!and!liabilities'!The!Group’s!and!the!Company’s!objective!is!to!maintain!a!balance!between!continuity!of!funding!and!flexibility! through!the!use!of!stand-by!credit!facilities' NOTES TO THE FINANCIAL STATEMENTS FOR!THE!FINANCIAL!YEAR!ENDED!'$!DECEMBER!"%"' 290 ANNUAL REPORT 2023
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