NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 SECTION 4: FINANCIAL PERFORMANCE 210 34. SUPPLIER FINANCE ARRANGEMENTS The Group has supplier finance arrangements where finance institutions offering to pay amounts at a date later than, when suppliers are paid. These arrangements provide the Group with extended payment terms, compared to the related invoice payment due date. The Group derecognises the original liabilities to which supplier finance arrangements apply because a legal release has been obtained or the original liability has been substantially modified on entering into the arrangement. These arrangements commonly extend payment terms significantly beyond the normal terms agreed with other suppliers that are not participating. The Group incurs additional interest to the bank on the amounts due to the suppliers. Another type of the arrangement, for which the related amounts are presented as part of borrowings, has the following terms and conditions:- Group 2024 2023 RM’000 RM’000 Carrying amount of the financial liabilities that are subject to supplier finance arrangements Liabilities under supplier finance arrangements of which the supplier has received payments from the finance institutions 4,494 6,916 Range of payment due dates Days Days Liabilities that are part of supplier finance arrangements 122-151 days 128-153 days Comparable trade payables that are not part of supplier finance arrangements 1-90 days after 1-90 days after invoice date invoice date The changes in liabilities that are subject to supplier finance arrangements are primarily attributable to additions resulting from purchases of goods and subsequent cash settlements. There are no material non cash changes in these liabilities. 35. CAPITAL MANAGEMENT The capital structure of the Group and of the Company consists of net debt of the Group and of the Company comprising borrowings as detailed in Note 16 of the financial statements off set with cash and bank balances, and equity of the Group and of the Company comprising issued capital, reserves, retained earnings and non-controlling interest as detailed in Notes 14, 15 and 16 of the financial statements.
RkJQdWJsaXNoZXIy NDgzMzc=