38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (b) Liquidity risk Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group’s and the Company’s liquidity risk management policy is to maintain sufficient liquid financial assets and stand-by credit facilities with several banks so as to ensure that all operating, investing and financing needs are met. Analysis of financial instruments by remaining contractual maturities The table below summarises the maturity profile of the Group’s and the Company’s liabilities at the reporting date based on contractual undiscounted repayment obligations. On demand or within one year RM’000 One to five years RM’000 More than five years RM’000 Total RM’000 Group Financial liabilities 2025 Trade and other payables 1,745,784 280,036 135,612 2,161,432 Lease liabilities 2,282 2,108 - 4,390 ICPS 2,871 8,353 - 11,224 Borrowings 1,231,579 1,811,061 106,105 3,148,745 Total undiscounted financial liabilities 2,982,516 2,101,558 241,717 5,325,791 2024 Trade and other payables 1,606,913 402,633 125,269 2,134,815 Lease liabilities 2,975 4,491 792 8,258 ICPS 2,871 11,224 - 14,095 Borrowings 1,384,896 1,123,588 54,071 2,562,555 Total undiscounted financial liabilities 2,997,655 1,541,936 180,132 4,719,723 367
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