182 / 204
Notes To The
Financial Statements
As at 31 March 2019
35. Financial instruments (cont’d.)
(b) The financial instruments of the Group and of the Company as at the reporting date are categorised into
the following classes: (cont’d.)
Group
Company
2019
2018
2019
2018
RM’000
RM’000
RM’000
RM’000
(ii) Fair value through profit or loss
Short term investments (Note 21)
148,122
43,883
31,735
7,983
(iii) Financial liabilities measured at
amortised cost
Trade payables (Note 30)
6,916
7,982
63
1
Other payables (Note 30)
29,923
28,902
1,684
1,641
Amount due to related companies
(Note 20)
512
166
-
301
Total financial liabilities measured at
amortised cost
37,351
37,050
1,747
1,943
36. 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.
178
Fima Corporation Berhad
(21185-P)
Annual Report 2019