177 / 188
173
NOTES TO THE FINANCIAL STATEMENTS
F i m a C o r p o r at i o n B e r h a d ( 2 1 1 8 5 - P ) •
A n n u a l R e p o r t 2 0 1 8
36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)
(c) Liquidity/Funding Risk (Cont’d.)
Analysis of financial instruments by remaining contractual maturities (Cont’d.)
Contractual
cashflow on demand
or within one year
2018
2017
RM’000
RM’000
Company
Financial liabilities:
Trade and other payables (Note 30)
1,642
1,629
Amount due to related companies (Note 20)
301
-
Total undiscounted financial liabilities
1,943
1,629
(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 RM55,319,000 (2017: RM47,470,000) due from the Government of Malaysia.
37. 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.