Amtel Holdings Berhad - Company Announcements - Bursa Malaysia

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NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
39. SIGNIFICANT EVENTS
On 9 May, 2003, the Company via its wholly owned subsidiary company namely Amtel Resources Sdn. Bhd.
(“ARSB”) entered into an unconditional Share Sale Agreement with Loh Weng Sung (“the Purchaser”) for the
disposal of its entire 50% equity interest comprising 250,000 ordinary shares of RM1/- each in Kota Naluri Sdn.
Bhd. (“KNSB”) for a cash consideration of RM750,000/-.
Subsequently, on 3 July, 2003, ARSB entered into a Variation Agreement with the Purchaser and KNSB for the
settlement of the purchase consideration of RM750,000/- by way of the transfer of 12 parcels of properties
which are beneficially owned by the Purchaser to ARSB. The 11 parcels of properties were transferred to and
registered in the name of ARSB on 31 December, 2003 and 1 parcel of the property was transferred and
registered on 5 January, 2004.
40. FINANCIAL INSTRUMENTS
(a) Financial Risk Management Policies
The Group’s financial risk management policy seeks to ensure that adequate financial resources are
available for the development of the Group’s business whilst managing its risks. The Group operates within
clearly defined guidelines that are approved by the Board and the Group’s policy is not to engage in
speculative transactions.
The main risks and corresponding management policies arising from the Group’s normal course of
business are as follows:-
(i) Foreign Exchange Risk
The Group is exposed to foreign currency risk as a result of its normal trade activities when the
currency denomination differs from its functional currency.
The Group maintains a natural hedge, whenever possible, by depositing foreign currency proceeds
from sales into foreign currency bank account which will primarily be used for payment of purchases
in the same denomination. Foreign exchange exposures in transactional currencies other than its
functional currency are kept to an acceptable level.
The net unhedged financial assets and financial liabilities of the Group as at 30 November, 2003 that
are not denominated in its functional currency are as follows:-
Functional currency of the Group
Amtel Holdings Berhad 2003 annual report
United States
Dollar Euro Total
RM RM RM
Trade Receivables
Ringgit Malaysia 7,664,900 25,594 7,690,494
Other Receivables, Deposits
and Prepayments
Ringgit Malaysia 891,021 - 891,021