107,682.0 107,676.8 5.2 Company Payables 4,443.2 4,443.2 0 Financial guarantee contracts 312.2 312.2 0 Lease liabilities 73,805.1 73,805.1 0 Amounts due to subsidiaries 6,709.1 6,709.1 0 Amounts due to associates 765.9 765.9 0 Borrowings 36,231.9 36,231.9 0 Derivative financial instruments 2.9 0 2.9 Other liabilities 711.2 711.2 0 122,981.5 122,978.6 2.9 (b) Financial risk management The Group and the Company have exposures to the following risks embedded in its financial instruments: • Credit risk; • Liquidity risk; and • Market risk. Credit risk Credit risk is the risk of a financial loss to the Group and the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group’s and the Company’s exposures to credit risk arise principally from its receivables from customers,investment in unquoted debt security, deposits, bank and cash balances and derivative financial instruments. In addition, the Company’s exposure to credit risk arises principally from loans and advances to subsidiaries and financial guarantees given to banks in respect of banking facilities granted to certain subsidiaries and an associate. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 311 45 FINANCIAL INSTRUMENTS (CONTINUED) (b) Financial risk management (continued) Credit risk (continued) Net reversal/(losses) on impairment of financial instruments are mainly from: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Net reversal/(losses) on: Trade receivables - recognised in profit or loss (105.1) (163.2) (93.7) (156.7) - reversed 240.2 13.9 232.4 0 Trade contract assets - recognised in profit or loss (33.8) (37.7) (23.1) (34.4) - reversed 22.6 71.0 19.3 64.0 Investment in unquoted debt security - recognised in profit or loss (6.0) (3.1) (6.0) (3.1) - reversed 2.9 5.4 2.9 5.4 Intercompany balances - recognised in profit or loss 0 0 (163.7) (66.1) - reversed 0 0 163.0 210.8 Other non-trade receivables - recognised in profit or loss