Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 45 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Liquidity risk (continued) Within 1 year Total contractual undiscounted cash flows Total carrying amount RM’000 RM’000 RM’000 Company 2023 Non-derivative financial liabilities Financial guarantees* 368,960 368,960 - Other payables and accruals 1,148 1,148 1,148 Amounts owing to subsidiaries 35,433 35,433 35,433 Loans and borrowings 47,826 47,826 45,000 453,367 453,367 81,581 2022 Non-derivative financial liabilities Financial guarantees* 317,053 317,053 - Other payables and accruals 2,361 2,361 2,361 Amounts owing to subsidiaries 22,410 22,410 22,410 Loans and borrowings 62,840 62,840 59,714 404,664 404,664 84,485 * This represents the maximum exposure to the Company in the event that the financial guarantee contracts issued by the Company to its subsidiaries are called upon. These liabilities have been included in the consolidated statement of financial position of the Group and hence will not result in any additional liability to the Group. 46 FAIR VALUES OF FINANCIAL INSTRUMENTS The carrying amounts of financial assets and liabilities classified within current assets and current liabilities respectively approximate their fair values due to the relatively short term nature of these financial instruments. The fair values of forward exchange contracts are estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. Fair values of non-derivative financial liabilities are calculated based on the present value of future principal and interest cash flows, discounted at the market rate of interest at the end of the reporting period. 285 Wasco Berhad
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