Pg 147 - Berjaya Corporation Berhad

Berjaya Land Berhad (201765-A)
Annual Report 2005
91
38 FINANCIAL INSTRUMENTS (CONT’D)
(c)
Foreign Exchange Risk (Cont’d)
Financial Assets/Liabilities Held in Non-Functional Currency
Functional Currency Japanese Sterling
of Group Companies Yen Pound Total
RM’000 RM’000 RM’000
Borrowings
At 30.4.2005:
United States Dollars - 14,117 14,117
At 30.4.2004:
United States Dollars - 15,576 15,576
Singapore Dollars 1,454 - 1,454
1,454 15,576 17,030
(d) Liquidity Risk
The Group actively manages its debt maturity profile, operating cash flows and the availability of funds so as to ensure that
refinancing, repayment and funding needs are met. As part of its overall prudent liquidity management, the Group maintains
sufficient levels of cash or cash convertible investments to meet its working capital requirements. In addition, the Group strives to
maintain available banking facilities at reasonable level to its overall debt position. As far as possible, the Group raises committed
funding from both capital markets and financial institutions and prudently balances its portfolio with some short term funding so as
to achieve overall cost effectiveness.
(e)
Credit Risk
Credit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits and monitoring
procedures. Credit risks are minimised and monitored by limiting the Group’s association to business partners with high
creditworthiness. Trade receivables are monitored on an ongoing basis via Group management reporting procedures.
The Group does not have any significant exposure to any individual customer or counterparty nor does it have any major
concentration of credit risk related to any financial instruments except for the amounts owing by holding, related and associated
companies.
(f)
Fair Values
Group
Company
Financial Liability
Carrying Fair Carrying Fair
amount value amount value
RM’000 RM’000 RM’000 RM’000
ICULS 1999/2009 - 30 April 2005 434,538 495,448 893,005 749,897
- 30 April 2004 588,659 630,044 894,449 986,686
The fair value of the portion of quoted ICULS 1999/2009 under put option granted to certain financial institutions is determined by
the present value of the estimated future cash outflow at the end of the extended put option period. The fair value of the rest of the
quoted ICULS 1999/2009 is determined by reference to stock exchange quoted market bid prices at the close of the business on
the balance sheet date.