293 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) For the financial year ended 31 January 2023 ACCOUNTABILITY (FINANCIAL STATEMENTS) 41. Financial risk management objectives and policies (continued) (b) Credit risk (continued) (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 represent the Company’s maximum exposure to credit risk on financial guarantee contracts. Company 2023 RM million 2022 RM million Financial guarantee contracts 5,375 3,734 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 from mismatches 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: Group On demand or within one year RM million Two to five years RM million Over five years RM million Total RM million 31 January 2023 Trade and other payables 1,290 232 2 1,524 Loans and borrowings 1,925 8,440 2,340 12,705 Lease liabilities 24 95 - 119 Gross settled interest rate swaps - Receipts (216) (439) (102) (757) - Payments 91 258 55 404 Net settled foreign exchange forward contracts (38) - - (38) Put option liability 62 - - 62 Total undiscounted financial liabilities 3,138 8,586 2,295 14,019 As at 31 January 2023, the Group’s total undrawn borrowing facilities and perpetual securities amounted to RM5,329 million which comprises a project financing term loan facility of RM3,210 million, Perpetual Sukuk of RM1,829 million and revolving credit facilities of RM290 million. These facilities are secured primarily to finance the Group’s ongoing and new FPSO projects, and expansion in the Renewables and Green Technologies businesses. With the continued availability of these borrowing facilities and perpetual securities required for the Group to support their current level of operations, the Group expects that it has sufficient liquidity to meet its liabilities in the foreseeable future. Subsequent to the reporting date, the Group has drawn down RM611 million of the above-mentioned project financing term loan facility, which was partially utilised for working capital purposes to settle its project-related trade payables which were outstanding as at 31 January 2023.
RkJQdWJsaXNoZXIy NDgzMzc=