3 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
(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.
Cash flow forecasting is performed by Group finance. Group finance monitors rolling forecasts of the Group’s liquidity
requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its
undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants
on any of its borrowing facilities. Such forecasting takes into consideration the Group's debt financing plans, covenant
compliance and compliance with internal statements of financial position ratio targets.
Surplus cash held by the subsidiaries over and above balance required for working capital management are transferred
to the Group treasury. Group treasury invests surplus cash in financial instruments with appropriate maturities or
sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts.
The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period
at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Group's and of the Company's liabilities at the reporting date
based on contractual undiscounted repayment obligations.
On demand
or within
1 year
RM’000
1 – 5 years
RM’000
Over
5 years
RM’000
Total
RM’000
2015
Group
Trade and other payables
616,883
–
–
616,883
Borrowings
359,149
334,702
888,071
1,581,922
Deposits
–
–
13,914
13,914
Total undiscounted financial liabilities
976,032
334,702
901,985
2,212,719
Company
Trade and other payables
207,093
258,599
–
465,692
Borrowings
130,120
–
–
130,120
Financial guarantee contracts*
800,000
–
–
800,000
Total undiscounted financial liabilities
1,137,213
258,599
–
1,395,812
* Related to Islamic Medium Term Notes (Note 29)
262
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONTINUED)
