41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (f) Fair value Financial instruments that are not measured at fair value and whose carrying amounts are reasonable approximation of fair value Included in these classes of financial instruments are certain financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value: Note Trade and other receivables 22 Cash, bank balances and deposits 27 Borrowings 35 Trade and other payables 36 The carrying amounts of these financial assets and financial liabilities are reasonable approximation of fair values due either to the short term nature or insignificant impact of discounting or that they are floating rate instruments that are repriced to market interest rates on or near the reporting date. Determination of fair value The following table provides the fair value measurement hierarchy of the Group’s and the Company’s financial assets. Level 2 – significant observable input Group Company 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 Assets measured at fair value: Short term investments 13,504 26,616 4,278 – The valuation date of these financial instruments is 31 December 2024 and 2023, respectively. There have been no transfers between levels during the period. Short term investments are valued based on currently available deposits with similar terms and maturities. 42. CAPITAL MANAGEMENT The primary objective of the Group’s and of the Company’s capital management is to ensure that they maintain a strong credit rating and healthy capital ratios in order to support their business and maximise shareholder value. The Group and the Company also aim to maintain a capital structure that has an appropriate cost of capital available to the Group and the Company. In order to achieve this overall objective, the Group’s capital management, among other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-bearing loans and borrowing in the current period. Notes to the Financial Statements For the year ended 31 December 2024 UEM EDGENTA BERHAD 364 Integrated Annual Report 2024
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