MKH Berhad 219 42. FINANCIAL INSTRUMENTS Categories of financial instruments The following table analyses the financial assets and financial liabilities in the statements of financial position by the class of financial instruments to which they are assigned, and therefore by the measurement basis: The Group The Company 2021 2020 2021 2020 RM RM RM RM Financial assets At FVTPL: Other investment 355,820 132,496 - - At amortised cost: Receivables and deposits 196,871,803 189,804,387 351,874,478 356,545,723 Cash, bank balances, term deposits and fixed income funds 427,546,675 374,653,655 33,763,775 1,900,392 Financial liabilities At amortised cost: Payables and accruals 933,964,454 852,558,292 600,511 712,040 Lease liability 19,085,882 18,740,678 - - Loans and borrowings 529,808,719 633,773,775 138,031,600 167,653,600 43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Group’s businesses whilst managing its risks. The Group operates within clearly defined guidelines that are approved by the Board and the Group’s policy is not to engage in speculative transactions. The main risks and corresponding management policies arising from the Group’s normal course of business are as follows: (i) Credit risk C redit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. T he Group’s and the Company’s exposure to credit risk primarily arises from the receivables. For other financial assets, the Group minimises credit risk by dealing with high credit rating counterparties. The maximum risk associated with recognised financial assets is the carrying amounts as presented in the statements of financial position and corporate guarantee provided by the Company to banks on subsidiaries’ credit facilities. Notes to the Financial Statements FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2021
RkJQdWJsaXNoZXIy NDgzMzc=