41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (f) Fair value Financial instruments that are not measured at fair value and whose carrying amounts are reasonable approximation of fair value Included in these classes of financial instruments are certain financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value: Note Trade and other receivables 22 Cash, bank balances and deposits 27 Borrowings 35 Trade and other payables 36 The carrying amounts of these financial assets and financial liabilities are reasonable approximation of fair values due either to the short-term nature or insignificant impact of discounting or that they are floating rate instruments that are repriced to market interest rates on or near the reporting date. Determination of fair value The following table provides the fair value measurement hierarchy of the Group’s financial assets Group Level 2 – significant observable input 2022 RM’000 2021 RM’000 Assets measured at fair value: Short-term investments 97,178 28,310 The valuation date of these financial instruments is 31 December 2022 and 2021, respectively. There have been no transfers between levels during the period. Short-term investments are valued based on currently available deposits with similar terms and maturities. 42. CAPITAL MANAGEMENT The primary objective of the Group’s and of the Company’s capital management is to ensure that they maintain a strong credit rating and healthy capital ratios in order to support their business and maximise shareholder value. The Group and the Company also aim to maintain a capital structure that has an appropriate cost of capital available to the Group and the Company. In order to achieve this overall objective, the Group’s capital management, among other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches of the financial covenants of any interest-bearing loans and borrowing in the current period. The Group and the Company manage capital by reference to the debt to asset ratio. The Group’s and the Company’s debt to asset ratio is as follows: Group Company 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Term loans 107,018 71,389 – – Revolving credit 101,732 119,948 52,000 52,000 IMTNs 250,000 252,184 250,000 252,184 Total debt 458,750 443,521 302,000 304,184 Total assets 2,868,671 2,855,070 1,891,693 1,897,173 Debt to asset ratio 16% 16% 16% 16% 43. SEGMENT INFORMATION (a) Business unit segments For management purposes, the Group is organised into business units based on their products and services, and reflect the Group’s offerings across different sectors as follows: Asset Management The asset management segment provides integrated facilities management and engineering contracting services for a range of assets and building types specialising in healthcare support and property and facility solutions. (i) Healthcare support The healthcare support division delivers optimal solutions in improving the non-clinical support services demanded by healthcare providers and other commercial industries. Services range from facilities and biomedical engineering maintenance, waste management, linen and laundry, to housekeeping and portering services. (ii) Property and facility solutions (“PFS”) The PFS division offers integrated facilities management services complimented with technology-driven green building solutions and asset optimisation, with a focus on enhancement and energy solutions. p.364 p.365 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
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