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FIMA CORPORATION BERHAD
(21185-P) |
Annual Report
2016
NOTES TO THE FINANCIAL
STATEMENTS 31 MARCH 2016
(contd.)
35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.)
(c) Liquidity/Funding Risk
The Group defines liquidity/funding risk as the risk that funds will not be available to meet its liabilities
as and when they fall due.
The Group actively manages its operating cash flows and the availability of funding so as to ensure
that all funding needs are met. As part of its overall prudent liquidity management, the Group maintains
sufficient levels of cash or cash convertible instruments to meet its working capital requirements. To
ensure availability of funds, the Group closely monitors its cash flow position on a regular basis.
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Group and of the Company’s liabilities at the
reporting date based on contractual undiscounted repayment obligations.
Contractual Cashflow
On demand or within
one year
2016
2015
RM
RM
Group
Financial liabilities:
Trade and other payables (exclude provision)
51,818
111,395
Amount due to related companies (Note 20)
660
725
Total undiscounted financial liabilities
52,478
112,120
Company
Financial liabilities:
Trade and other payables (Note 30), representing total undiscounted
financial liabilities
3,805
3,581
(d) Credit Risk
Credit risk, or the risk of counterparties defaulting, is controlled by the application of credit approvals,
limits and monitoring procedures. Credit risk is minimised and monitored via strictly limiting the Group’s
associations to business partners with high creditworthiness. Trade receivables are monitored on an
ongoing basis via Group management reporting procedures.
The Group does not have any significant exposure to any individual customer or counterparty except
with the Government of Malaysia as disclosed in Note 18. The Group does not have any major
concentration of credit risk related to any financial instruments.