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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
34. FINANCIAL INSTRUMENTS (CONTD.)
(b) The financial instruments of the Group and of the Company as at the reporting date are categorised into
the following classes:
Group
Company
2016
2015
2016
2015
RM’000
RM’000
RM’000
RM’000
(i) Loans and Receivables
Trade receivables (Note 18)
148,060
162,618
345
401
Other receivables excluding
tax recoverable and
prepayments (Note 18)
15,477
12,593
226
189
Amount due from related
companies (Note 20)
34
17
25,987
6,244
Cash and cash equivalents (Note 21)
177,593
172,640
39,356
39,510
Total loans and receivables
341,164
347,868
65,914
46,344
Group
Company
2016
2015
2016
2015
RM’000
RM’000
RM’000
RM’000
(ii) Financial Liabilities Measured
at Amortised Cost
Trade payables (Note 30)
33,960
85,788
-
-
Other payables excluding
provision (Note 30)
17,858
25,607
3,805
3,581
Amount due to related
companies (Note 20)
660
725
-
-
Total financial liabilities
measured at amortised cost
52,478
112,120
3,805
3,581
35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s financial risk management policy seeks to ensure that adequate financial resources are available
for the development of the Group’s businesses whilst managing its interest rate, foreign exchange, liquidity/
funding and credit risks. The Group operates within clearly defined guidelines that are approved by the Board
and the Group’s policy is not to engage in speculative transactions.
(a) Interest Rate Risk
The Group’s primary interest rate risk relates to interest-bearing debt as at year end. The investments
in financial assets are mainly short term in nature and they are not held for speculative purposes.
The Group manages its interest rate exposure by maintaining a prudent mix of fixed and floating rate
borrowings. The Group actively reviews its debt portfolio, taking into account the investment holding
period and nature of its assets. This strategy allows it to capitalise on cheaper funding in a low interest
rate environment and achieve a certain level of protection against rate hikes.
The information on maturity dates and effective interest rates of financial assets and liabilities are
disclosed in their respective notes.