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Fima Corporation Berhad

(21185-P)

financial statements

162

NOTES TO THE FINANCIAL STATEMENTS

35. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(c) Liquidity/Funding Risk (Cont’d.)

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

2017

2016

RM

RM

Group

Financial liabilities:

Trade and other payables

82,761

49,698

Amount due to related companies (Note 20)

627

660

Total undiscounted financial liabilities

83,388

50,358

Company

Financial liabilities:

Trade and other payables (Note 29), representing total undiscounted financial liabilities

1,629

1,685

(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 has no significant concentration of credit risk that may arise from exposures to a single debtor or to groups of

debtors except for a balance of RM47,470,000 (2016: RM135,723,000) due from the Government of Malaysia.

36. CAPITAL MANAGEMENT

The primary objective of the Group’s capital management is to ensure that it maintains an optimal capital structure in order to

support its business and maximise shareholder value.

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain

or adjust the capital structure, the Group may adjust the dividend payment to shareholders. The Group’s approach in managing

capital based on defined guidelines that are approved by the Board.

There were no changes in the Group’s approach to capital management during the year.