FORGING AHEAD - Tradewinds Plantation Berhad

208
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
37. FINANCIAL RISk MANAGEMENT OBJECTIVES AND POLICIES (continued)
(ii) Credit risk
Cash deposits and trade receivables may give rise to credit risk which requires the loss to be recognised if a counter
party fails to perform as contracted. The management monitors exposure to credit risk on an ongoing basis via
management reporting procedures and action is taken to recover debts when due.
Exposure to credit risk
At the end of the reporting period, the maximum exposure to credit risk for the Group and for the Company are
represented by the carrying amount of each class of financial assets recognised in the statements of financial position.
Credit risk concentration profile
As at 31 December 2010, other than the amounts owing by three major customers of the Group constituting 46.9%
(2009: 61.6%) of the total receivables of the Group and the amounts owing by subsidiaries constituting 98.1%
(2009: 99.7%) of the total receivables of the Company, there were no significant concentrations of credit risk.
Financial assets that are neither past due nor impaired
Information regarding trade receivables that are neither past due nor impaired is disclosed in Note 15 to the financial
statements. Deposits, cash and bank balances placed with financial institutions that are neither past due nor impaired
are placed with major financial institutions in Malaysia with high credit ratings and no history of default.
Financial assets that are past due but not impaired
Information regarding trade receivables that are past due but not impaired is disclosed in Note 15 to the financial
statements.
(iii) Liquidity and cash flow risk
The Group actively manages its debt maturity profile, operating cash flows and the availability of funding so as to
ensure that all operating, investing and financing needs are met. In liquidity risk management strategy, the Group
measures and forecasts its cash commitments and maintains a level of adequate credit facilities to finance its working
capital. In addition, the Group carries out treasury management to optimise the cash flow utilisation of the Group
where applicable.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010