186 / 204
Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
184
37. 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
2020
2019
2020
2019
RM’000
RM’000
RM’000
RM’000
(ii) Fair value through profit or loss
Short term investments (Note 23)
127,030
148,122
10,580
31,735
(iii) Financial liabilitiesmeasured at
amortised cost
Trade payables (Note 32)
7,136
6,916
29
63
Other payables (Note 32)
22,716
29,923
1,687
1,684
Amount due to related companies (Note 22)
1,627
512
-
-
Total financial liabilities measured at
amortised cost
31,479
37,351
1,716
1,747
38. 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.