Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

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158 Notes to the Financial Statements For the fi nancial year ended 31 December 2011 42. Fair value of fi nancial instruments (contd.) (b) Fair value hierarchy The Group classifi es fair value measurement using a fair value hierarchy that refl ects the signifi cance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 - Quoted prices in active markets for identical assets or liabilities; Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable inputs). The following table shows an analysis of fi nancial instruments carried at fair values by level of fair value hierarchy: Group/Company Level 1 Level 2 Level 3 Total 2011 RM’000 RM’000 RM’000 RM’000 Financial assets Fixed income debt securities - 52,838 - 52,838 Equity instruments 8,314 - - 8,314 Unit trust funds 27,557 - - 27,557 35,871 52,838 - 88,709 Comparative fi gures have not been presented for 31 December 2010 by virtue of paragraph 44G of FRS 7. There have been no transfers between Level 1 and Level 2 during the fi nancial year. 43. Financial risk management objectives and policies The Group and the Company are exposed to fi nancial risks arising from their operations and the use of fi nancial instruments. The Group’s overall risk management strategy seeks to minimise potential adverse effects on the fi nancial performance of the Group. The key fi nancial risks include credit risk, liquidity risk, interest rate risk, foreign currency risk and market price risk. Financial risk management policies are reviewed and approved by the Board of Directors and executed by the management of the respective operating units. The Group Risk Committee provides independent oversight on the effectiveness of the risk management process. It is, and has been throughout the current and previous fi nancial year, the Group’s policy that no derivatives shall be undertaken except for the use as hedging instruments where appropriate and cost-effi cient. The Group and the Company do not apply hedge accounting and do not hold or issue derivative fi nancial instruments for trading purposes. The following sections provide details regarding the Group’s and Company’s exposure to the above-mentioned fi nancial risks and the objectives, policies and processes for the management of these risks. Cahya Mata Sarawak Berhad
Notes to the Financial Statements For the fi nancial year ended 31 December 2011 43. Financial risk management objectives and policies (contd.) (a) Credit risk Credit risk is the risk of loss that may arise on outstanding fi nancial instruments should a counterparty default on its obligations. At the reporting date, the Group’s and the Company’s exposure to credit risk arises primarily from trade and other receivables. The Group’s objective is to seek continual revenue growth while minimising losses incurred due to increased credit risk exposure. The Group trades only with recognised and creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verifi cation procedures. In addition, receivables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not signifi cant. It is the Group’s policy that contractual deposits are collected and scheduled progress payments are received from the buyers when due. Titles to properties are only transferred upon full settlement. Management does not expect any counterparties to fail to meet their obligations. At the reporting date, the Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of fi nancial assets recognised in the statements of fi nancial position. There was no signifi cant concentration of credit risk with any entity. Information regarding fi nancial assets that are either past due or impaired and aging analysis is disclosed in Note 24. Management believes that no additional credit risk beyond that provided for is inherent in the Group’s trade and other receivables. (b) Liquidity risk Liquidity risk is the risk that the Group or the Company will encounter diffi culty in meeting fi nancial obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of fi nancial assets and liabilities. The Group adopts a prudent approach to managing its liquidity risk. The Group always maintains suffi cient cash and cash equivalents, and has available funding through a diverse source of committed and uncommitted credit facilities from various banks. Annual Report 2011 159
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Playing Our Role In Nation-building
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CONTENTS 2 3 4 8 13 14 15 20 Perfor
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Revenue (RM’000) Profi t before t
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“ Dear Shareholders, Group Chairm
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Whilst the opportunities for the Gr
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10 Mar 4 May 19 May 26 May 27 Jun 2
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24 Feb 1 Jul 19 Oct 30 Nov 24 Feb 1
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Board of Directors Tan Sri Dato’
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Y Bhg Dato’ Richard Alexander Joh
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Y Bhg Datu Michael Ting Kuok Ngie M
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DAVID LING KOAH WI Group General Co
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Segmental Analysis Segment Revenue
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Clinker CMS Cement owns East Malays
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Quarrying CMS Quarries Sdn Bhd and
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Construction & Road Maintenance The
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The Isthmus Property Development Th
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Education CMS Education Sdn Bhd own
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Strategic Investment: K&N Kenanga H
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CORPORATE RESPONSIBILITY
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Engagement & Communication Performa
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CMS Concrete Products Clay bricks m
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CMS Employees Volunteer in ‘Doing
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CSR Highlights Saving Lives Health
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Statement of Corporate Governance T
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Employees’ Share Option Scheme (
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Prior to each Board meeting, the Di
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Statement of Corporate Governance T
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Communicating with Shareholders and
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Responsibility The Board recognises
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Composition The Group Audit Committ
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Authority i. The Committee is autho
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Utilisation of Proceeds raised from
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FINANCIALS
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The directors have pleasure in pres
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Issue of Shares During the fi nanci
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Statement by Directors Pursuant to
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Independent Auditors’ Report To t
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ASSETS Group Company Note 2011 2010
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Statements of Changes In Equity For
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Statements of Cash Flows For the fi
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Statements of Cash Flows For the fi
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Notes to the Financial Statements F
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5. Interest income Notes to the Fin
Page 109 and 110: 8. Profi t before tax Notes to the
Page 111 and 112: 10. Directors’ remuneration (cont
Page 113 and 114: 12. Earnings per share (a) Basic ea
Page 115 and 116: 13. Property, plant and equipment (
Page 117 and 118: Notes to the Financial Statements F
Page 119 and 120: 14. Prepaid land lease payments Cos
Page 123 and 124: 18. Goodwill Notes to the Financial
Page 129 and 130: 19. Investments in subsidiaries (co
Page 131 and 132: 20. Investments in associates (cont
Page 135 and 136: 22. Deferred tax (contd.) Notes to
Page 137 and 138: 24. Trade and other receivables (co
Page 139 and 140: 25. Other current assets Notes to t
Page 141 and 142: 28. Cash and bank balances (contd.)
Page 143 and 144: 30. CMS Income Securities (contd.)
Page 145 and 146: 30. CMS Income Securities (contd.)
Page 147 and 148: 32. Trade and other payables Notes
Page 151 and 152: 36. Other reserves (contd.) Company
Page 153 and 154: 38. Employee benefi ts (contd.) Not
Page 155 and 156: 39. Commitments (contd.) Notes to t
Page 157 and 158: 40. Contingencies (contd.) (b) Othe
Page 159: 41. Related party transactions (con
Page 165 and 166: 45. Segment information Notes to th
Page 169 and 170: 46. Dividends Notes to the Financia
Page 171 and 172: OTHER INFORMATION
Page 173 and 174: Name of Direct Indirect % of Substa
Page 175 and 176: List of Properties As at 31 Decembe
Page 177 and 178: ** Land owned by third party Revalu
Page 179 and 180: Construction & Road Maintenance CMS
Page 181 and 182: 1. To receive the Audited Financial
Page 183 and 184: Names of Directors who are standing
Page 185 and 186: Form of Proxy No. of Shares Held: C
Page 188: CAHYA MATA SARAWAK BERHAD (Company
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Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

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