DESTINI AR 2017

41. Financial Instruments (Cont’d) (b) Financial risk management objectives and policies (Cont’d) (ii) Liquidity risk Liquidity risk refers to the risk that the Group or the Company will encounter difficulty in meeting its financial obligations as they fall due. 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 funding requirements and liquidity risk is managed with the objective of meeting business obligations on a timely basis. The Group finances its liquidity through internally generated cash flows and minimises liquidity risk by keeping committed credit lines available. The following table analyses the remaining contractual maturity for financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group and the Company can be required to pay. Total Total On demand contractual carrying within 1 year 1 - 2 years 2 - 5 years > 5 years cash flows amount RM RM RM RM RM RM Group 2017 Non-derivative financial liabilities Trade payables 71,513,562 - - - 71,513,562 71,513,562 Other payables 19,485,722 - - - 19,485,722 19,485,722 Amount due to a Director 1,500,000 - - - 1,500,000 1,500,000 Finance lease liabilities 870,965 878,492 737,329 218,485 2,705,271 2,464,850 Bank borrowings 55,057,941 126,864,145 9,876,103 94,882 191,893,072 176,513,486 Redeemable preference shares - - 1,363,558 - 1,363,558 1,363,558 148,428,190 127,742,637 11,976,990 313,367 288,461,184 272,841,178 2016 Non-derivative financial liabilities Trade payables 56,572,643 - - - 56,572,643 56,572,643 Other payables 21,487,614 - - - 21,487,614 12,763,906 Finance lease liabilities 782,496 816,515 1,199,008 158,004 2,956,023 2,674,484 Bank borrowings 15,455,740 26,639,926 39,525,937 8,643,231 90,264,834 82,327,339 Redeemable preference shares - - 1,377,287 - 1,377,287 1,377,287 94,298,493 27,456,441 42,102,232 8,801,235 172,658,401 156,279,673 166 DESTINI BERHAD Financial Statements Notes to the 31 December 2017