Wah Seong Corporation Berhad Annual Report 2019

179 ANNUAL REPORT 2019 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 44 FINANCIAL INSTRUMENTS BY CATEGORY Group Company 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Financial assets Financial assets measured at fair value through profit or loss – designated upon initial recognition: - Derivatives financial assets 1,101 146 - - - Short term investments 623 609 623 609 - Investment in equity instruments 6 6 - - Financial assets at amortised cost: - Trade and other receivables (excluding prepayments and value added tax receivables) 394,063 357,466 5,910 12,815 - Amounts owing by subsidiaries - - 169,137 163,851 - Amounts owing by associates 20,386 11,617 26 20 - Amounts owing by joint ventures 47,803 55,471 - - - Finance lease receivables 17,826 32,422 - - - Time deposits 52,142 75,764 4,700 8,500 - Cash and bank balances 94,700 156,363 1,260 854 626,920 689,103 181,033 186,040 Total 628,650 689,864 181,656 186,649 Financial liabilities Financial liabilities measured at fair value through profit or loss – designated upon initial recognition: - Derivatives financial liabilities 1,860 - - - Financial liabilities at amortised cost: - Trade and other payables (excluding employee benefits and value added tax payables) 258,513 340,421 12,921 12,372 - Amounts owing to subsidiaries - - 20,592 6,797 - Amounts owing to associates 33 - - - - Amounts owing to joint ventures 5,546 3,959 - - - Dividend payable 21,904 14,004 - - - Loans and borrowings 948,095 847,625 152,217 170,011 - Lease liabilities 234,764 - - - 1,468,855 1,206,009 185,730 189,180 Total 1,470,715 1,206,009 185,730 189,180 45 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Group’s and the Company’s overall financial risk management objectives and policies are to ensure that the Group and the Company create value and maximise returns for its shareholders. Financial risk management is carried out through risk review, internal control systems, benchmarking to the industry’s best practices and adherence to the Group’s financial risk management policies. The main risks arising from the financial instruments of the Group and the Company are credit risk, market risk, and liquidity risk. Management monitors the Group’s and the Company’s financial position closely with the objective to minimise potential adverse effects on the financial performance of the Group and of the Company.