NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
112
Annual Report 2015
45. FINANCIAL INSTRUMENTS
The Group’s activities are exposed to a variety of market risks (including foreign currency risk, interest
rate risk and equity price risk), credit risk and liquidity risk. TheGroup’s overall financial risk management
policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group’s financial performance.
45.1 FINANCIAL RISK MANAGEMENT POLICIES
The Group’s policies in respect of the major areas of treasury activity are as follows:-
(a) Market Risk
(i) Foreign Currency Risk
The Group is exposed to foreign currency risk on transactions and balances that are
denominated in currencies other than Ringgit Malaysia. The currencies giving rise
to this risk are primarily United States Dollar, New Zealand Dollar and Euro. Foreign
currency risk is monitored closely on an ongoing basis to ensure that the net exposure
is at an acceptable level.
Foreign currency exposure
USD
NZD
RM
Total
Group
RM’000
RM’000
RM’000
RM’000
31.3.2015
Financial assets
Other investment
–
–
110
110
Trade receivables
(1)
–
–
77,909
77,909
Other receivables and
deposits
–
2
1,016
1,018
Deposits with licensed
banks
–
–
3,965
3,965
Cash and bank balances
222
33
44,763
45,018
222
35
127,763
128,020
Financial liabilities
Trade payables
1,334
–
203
1,537
Other payables and
accruals
(2)
5
1
3,954
3,960
Term financing
–
–
15,814
15,814
Hire purchase payable
–
–
108
108
Trade financing
–
–
28,813
28,813
Term loans
–
–
89,624
89,624
1,339
1
138,516
139,856
Net financial
(liabilities)/assets
(1,117)
34
(10,753)
(11,836)
Less: Net financial
(assets)/liabilities
denominated in the
respective entities’
functional currency
–
(34)
10,753
10,719
Currency exposure
(1,117)
–
–
(1,117)
Notes:
(1)
- The trade receivables exclude accrued income.
(2)
- The other payables and accruals exclude deferred income.
