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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.