Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 200 F R A S E R & N E A V E H O L D I N G S B H D NOTES TO THE FINANCIAL STATEMENTS 29. FINANCIAL INSTRUMENTS (CONTINUED) (D) CREDIT RISK (CONTINUED) Inter-company loans and advances Risk management objectives, policies and processes for managing the risk The Company provides unsecured loans and advances to subsidiaries. The Company monitors the ability of the subsidiaries to repay the loans and advances on an individual basis. Exposure to credit risk, credit quality and collateral As at the end of the reporting period, the maximum exposure to credit risk is represented by their carrying amounts in the statement of financial position. Loans and advances provided are not secured by any collateral or supported by any other credit enhancements. Recognition and measurement of impairment loss As at the end of the reporting period, there was no indication that the loans and advances to the subsidiaries are not recoverable. (E) LIQUIDITY RISK Liquidity risk is the risk that the Group or the Company will not be able to meet its financial obligations as they fall due. The Group’s and the Company’s exposure to liquidity risk arises principally from its various payables, loans and borrowings. The Group and the Company maintain a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they fall due. It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. Maturity analysis The table below summarises the maturity profile of the Group’s and the Company’s financial liabilities as at the end of the reporting period based on undiscounted contractual payments: 2019 Note Carrying amount RM’000 Contractual interest rate % Contractual cash flows RM’000 Within 1 year RM’000 2-3 years RM’000 Group Interest-bearing borrowings 16 123,311 2.44 128,317 30,241 98,076 Financial guarantees – – 12,229 12,229 – Trade and other payables 29(A) 662,050 – 662,050 662,050 – Derivative financial liabilities 13 136 – 136 136 – 785,497 802,732 704,656 98,076 Company Financial guarantees – – 128,317 128,317 – Other payables 19 4,577 – 4,577 4,577 – 4,577 132,894 132,894 –