334 YINSON HOLDINGS BERHAD ACCOUNTABILITY NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2022 41. Financial risk management objectives and policies (continued) (a) Market risk (continued) (ii) Foreign currency risk (continued) The currency profile of monetary financial assets and financial liabilities are as follows: (continued) Denominated in currencies other than the entities’ functional currencies Malaysian Ringgit United States Dollar Others Denominated in functional currencies Total Group RM million RM million RM million RM million RM million 2021 Other investments - - - 229 229 Receivables 6 26 23 553 608 Receivables (intercompany, net) 43 826 13 6,210 7,092 Cash and bank balances 31 7 36 1,747 1,821 Borrowings - - - (6,106) (6,106) Lease liabilities - - (17) (10) (27) Payables (5) (4) (56) (808) (873) Payables (intercompany, net) (143) (422) (3) (6,665) (7,233) Derivatives - - - (225) (225) Put option liability - - - (181) (181) (68) 433 (4) (5,256) (4,895) (b) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group and the Company. At the reporting date, the Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amounts of each class of financial assets recognised in the statement of financial position. Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on the individual credit standings and financial strengths. Outstanding receivables are regularly monitored. Credit risk from balances with banks and financial institutions is managed by the Group’s Treasury department in accordance with the Group’s policy. Counterparty credit standings are reviewed by the Company’s Senior Management on an annual basis, and may be updated throughout the financial year. Limits are set to minimise the concentration of risks and therefore mitigate financial loss through potential counterparty’s failure to make payments. The Group has also considered the implications of COVID-19 pandemic (refer to Note 48) and Russia- Ukraine (refer to Note 47) conflict whilst assessing its credit risk for its counterparties. Accordingly, the Covid-19 pandemic and Russia-Ukraine conflict have not materially affected the credit risk of the Group’s counterparties in the current financial year.
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