338 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) (b) Credit risk (continued) (ii) Debt instruments at amortised costs other than trade receivables and contract assets (continued) As at 31 January 2022, the credit risk of the Group primarily relates to the Group’s 4 (2021: 4) largest customers which accounted for 60% (2021: 71%) of the outstanding trade receivables at the end of the reporting period. The Group believes these counterparties’ credit risk is low taking into consideration of their financial position, past collection experiences and other factors. Except for the impairment loss provided as disclosed in Note 24(a) to the financial statements, management does not expect any counterparty to fail to meet their obligations. (iii) Financial guarantee contracts The Company has issued financial guarantees to banks for borrowings of its subsidiaries. These guarantees are subject to the impairment requirements of MFRS 9. The amounts disclosed below represents the Company’s maximum exposure to credit risk on financial guarantee contracts. Company 2022 2021 RM million RM million Financial guarantee contracts 3,734 1,722 The Company has assessed that its subsidiaries have strong financial capacity to meet the contractual cash flow obligations and hence, does not expect significant credit losses arising from these guarantees. (c) Liquidity risk Liquidity risk is the risk that the Group and 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 frommismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objectives are to maintain a balance between continuity of funding and flexibility through the use of bank loans and perpetual securities. The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities based on contractual undiscounted repayment obligations: On demand or within one year Two to five years Over five years Total Group RM million RM million RM million RM million 31 January 2022 Trade and other payables 771 245 22 1,038 Loans and borrowings 1,037 7,811 2,392 11,240 Lease liabilities 15 9 - 24 Gross settled interest rate swaps - Receipts (24) (200) (96) (320) - Payments 67 198 83 348 Put option liability 126 - - 126 Total undiscounted financial liabilities 1,992 8,063 2,401 12,456
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