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notes to the financial statements (cont’d)
for the financial year ended 30 June 2014
ANNUAL REPORT 2014
121
36. Financial risk management objectives and policies (cont’d)
(a) Credit risk (contd.)
Financial assets that are neither past due nor impaired
Information regarding trade and other receivables that are neither past due nor impaired is disclosed in Note
22. Investment securities and derivatives that are neither past due nor impaired are placed with or entered
into with reputable financial institutions or companies with high credit ratings and no history of default.
Financial assets that are either past due or impaired
Information regarding financial assets that are either past due or impaired and ageing analysis is disclosed in
Note 22. Management believes that no additional credit risk beyond that provided for is inherent in the Group
and the Company’s trade and other receivables.
(b) Liquidity risk
Liquidity risk is the risk that the Group or the Company will not be able to meet their financial obligations due to
shortage of funds. The Group and the Company’s exposure to liquidity risk arises primarily frommismatches of
the maturities of financial assets and liabilities. The Group adopts a prudent approach to managing its liquidity
risk.
The Group always maintains sufficient cash and cash equivalents, and has available funding through a diverse
source of committed and uncommitted credit facilities from various banks.
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Group and the Company’s liabilities at the reporting
date based on contractual undiscounted repayment obligations.
On demand
or within
One to
Over five
one year
five years
years
Total
RM’000
RM’000
RM’000
RM’000
As at 30 June 2014
Group
Financial liabilities:
Trade and other payables,excluding
financial guarantees
315,646
–
–
315,646
Loans and borrowings
547,552
344,328
2,078
893,958
Derivatives - Cross currency swap
666
–
–
666
Total undiscounted financial liabilities
863,864
344,328
2,078
1,210,270
Company
Financial liabilities:
Trade and other payables, excluding
financial guarantees*
153,696
–
–
153,696
Loans and borrowings
190,512
5,740
–
196,252
Derivatives - Cross currency swaps
666
–
–
666
Total undiscounted financial liabilities
344,874
5,740
–
350,614