41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (b) Liquidity risk (contd.) Analysis of financial instruments by remaining contractual maturities (contd.) 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. (contd.) Company On demand or within one year RM’000 One to five years RM’000 More than five years RM’000 Total RM’000 2022 Financial liabilities: Other payables 26,405 – – 26,405 Lease liabilities 9,700 20,901 – 30,601 Loans and borrowings: – Revolving credit 52,000 – – 52,000 – IMTNs – 296,970 – 296,970 Total undiscounted financial liabilities 88,105 317,871 – 405,976 2021 Financial liabilities: Other payables 48,311 – – 48,311 Lease liabilities 7,773 23,992 – 31,765 Loans and borrowings: – ICPs 52,000 – – 52,000 – IMTNs 252,184 – – 252,184 Total undiscounted financial liabilities 360,268 23,992 – 384,260 (c) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense is denominated in a foreign currency) and the Group’s net investments in foreign subsidiaries. The Group operates internationally and is exposed to various currencies, mainly Singapore Dollar (“SGD”), Taiwanese Dollar (“TWD”), Indonesian Rupiah (“IDR”), United Arab Emirates Dirham (“AED”), Saudi Arabia Riyal (“SAR”) and New Zealand Dollar (“NZD”). The Group maintains a natural hedge, whenever possible, by borrowing in the currency of the country in which the investments are located or by borrowing in currencies that match the future revenue stream to be generated from its investments. As and when the Group undertakes significant transactions denominated in foreign currencies, with continuing exposure over the applicable periods of settlement, the Group evaluates its exposure and the necessity to hedge such exposure, as well as the availability and cost of such hedging instruments. 41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (c) Foreign currency risk (contd.) Sensitivity analysis for foreign currency risk The following table demonstrates the sensitivity of the Group’s profit before tax and equity to a reasonably possible change in the SGD and TWD exchange rates against the RM, with all other variables held constant. Change in SGD rate Effect on profit before tax RM’000 Effect on equity RM’000 2022 6% 1,579 33,305 –6% (1,579) (33,305) 2021 2% 620 8,379 –2% (620) (8,379) Change in TWD rate Effect on profit before tax RM’000 Effect on equity RM’000 2022 6% – 7,230 –6% – (7,230) 2021 6% – 5,158 –6% – (5,158) The impact of sensitivity analysis of the rest of the foreign currencies is not material to the Group. (d) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Company’s financial instruments will fluctuate because of changes in market interest rates. As the Group has no significant interest-bearing financial assets, the Group’s income and operating cash flows are substantially independent of changes in market interest rates. The Group’s interest-bearing financial assets are mainly short-term in nature and have been mostly placed in fixed deposits or occasionally, in short-term commercial papers. The Group’s interest rate risk arises primarily from interest-bearing borrowings. Borrowings at floating rates expose the Group to cash flow interest rate risk. Borrowings obtained at fixed rates expose the Group to fair value interest rate risk. The Group’s policy is to manage interest cost using a mix of fixed and floating rate debts. p.360 p.361 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
RkJQdWJsaXNoZXIy NDgzMzc=