Financial Statements Notes to the Financial Statements 35. FINANCIAL INSTRUMENTS (continued) (v) Liquidity risk (continued) Maturity analysis (continued) Carrying amount Contractual cash flows Within 1 year After 1 year but within 5 years After 5 years Company RM’000 RM’000 RM’000 RM’000 RM’000 2023 Non-derivative financial liabilities Lease liabilities 298 299 268 31 – Trade and other payables# 22,614 22,614 22,614 – – 22,912 22,913 22,882 31 – 2022 Non-derivative financial liabilities Lease liabilities 1,306 1,317 1,018 299 – Trade and other payables# 24,761 24,761 24,761 – – 26,067 26,078 25,779 299 – # Excludes deposits and rental advance billings. The above table has not included financial guarantees amounting to RM45,751,000 (2022: RM134,720,000) for outstanding bank loans and CCS obligations of its subsidiaries, of which the guarantee may be called by the banks anytime if the subsidiaries default. (vi) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s financial position or cash flows. (a) Foreign currency risk The Group is exposed to foreign exchange risk on sales, purchases, cash and cash equivalents, receivables and payables, and loans and borrowings that are denominated in a currency other than the respective functional currencies of Group entities. The currencies giving rise to this risk are primarily the Singapore Dollar, United States Dollar, Euro Dollar, Japanese Yen, India Rupee and Chinese Renminbi. Risk management objectives, policies and processes for managing the risk The Group uses foreign exchange forward contracts to manage its exposure to foreign currency movements on its net income denominated in Japanese Yen from its investments in Japan. Where necessary, the foreign exchange forward contracts are rolled over at maturity. The Group actively monitors its foreign currency risk and minimises such risk by borrowing in the functional currency of the borrowing entity or by borrowing in the same currency as the foreign investment (i.e. natural hedge of net investments). The Group also enters in cross currency interest rate swaps to realign borrowings to the same currency of the Group’s foreign investments to achieve a natural hedge (see note 35(vii)). In respect of other monetary assets and liabilities held in currencies other than the functional currencies, the Group ensures that the net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rate where necessary to address short term imbalances. The nominal value and fair value of the foreign exchange forward contracts, cross currency swaps and cross currency interest rate swaps are disclosed in note 24. IHH Healthcare Berhad 214
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