Notes to the Financial Statements for the Financial Year Ended 30 September 2024 Sustaining Lives, Empowering Communities Governance That Inspires Confidence Financial Insights Through Numbers Empowering Ownership PG. 295 43. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) (ii) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations when they fall due. The Group’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and financial liabilities. The Group’s objective is to maintain a balance between continuity of funding and flexibility through use of stand-by credit facilities. The Group actively manages its operating cash flows and the availability of funding so as to ensure that all repayment and funding needs are met. As part of its overall prudent liquidity management, the Group maintains sufficient levels of cash or cash convertible investments to meet its working capital requirements. In addition, the Group strives to maintain available banking facilities of a reasonable level to its overall debt position. As far as possible, the Group raises committed funding from both capital markets and financial institutions so as to achieve overall cost effectiveness. As at 30 September 2024, the current liabilities of the Company have exceeded the current assets by RM100,351,719, which includes loans and borrowings of RM175,903,887 and amount due to a subsidiary of RM300,000 and accruals of RM825,173. The net current liabilities position is mainly due to the capitalisation of amount owing by subsidiaries into investment in subsidiaries. As at 30 September 2024, the Company complied with all of its loan covenants. Despite having the net current liabilities position, the Board of Directors is of the view that the Company will be able to meet its financial obligations as and when it was due with following measures placed by the Group: 1. Dividend receivable from the on-going projects’ stakeholders; and 2. Launch of projects in subsidiaries namely, Srijang Kemajuan Sdn. Bhd. and Suria Villa Sdn. Bhd., which currently hold a land bank amounting to RM184,317,701 and RM265,279,676, respectively.
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