200901023978 (867077-X) Kimlun Corporation Berhad (Incorporated in Malaysia) 34. Financial risk management objectives and policies (cont'd) (a) Credit risk (cont'd) Exposure to credit risk - - Credit risk concentration profile Financial assets that are neither past due nor impaired Financial assets that are either past due or impaired (b) Liquidity risk Information regarding financial assets that are either past due or impaired is disclosed in Note 21. 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 theCompany’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. To ensure continuity of funding, the Group's and the Company's policy is to manage the debt maturity profile, operating cash flows and the availability of funding to support the operating cycle of the business. 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. an amount of RM699,079,222 (2020: RM818,559,375) relating to corporate guarantees provided by the Company to several financial institutions for its subsidiaries' credit facilities, and to third parties for the credit facilities granted by suppliers and the joint venture and subsidiaries' performance in construction contracts. The Group’s major concentration of credit risk relates to the amounts owing by 2 (2020: 1) customers which constituted approximately 28% (2020: 16%) of its trade receivables (including related parties) at the end of the reporting period. Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note 21. Deposits with banks that are neither past due nor impaired are placed with or entered into with reputable financial institutions. - 96 - NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 Annual Repor t 2021 156
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