MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...

Notes to The Financial Statements (cont’d)
35. fINANCIAl INSTRUMENTS (CoNT’D)
(a) Classification of financial Instruments (cont’d)
Company
2011
loans and
receivables
financial
liabilities at
amortised cost Total
RM RM RM
financial Assets
Amount due from subsidiaries 208,179,740 - 208,179,740
Trade and other receivables 1,710 - 1,710
Cash and bank balances 14,033 - 14,033
208,195,483 - 208,195,483
financial liabilities
Amount due to subsidiaries - 22,192,487 22,192,487
Borrowings - 5,321 5,321
Trade and other payables - 162,249 162,249
- 22,360,057 22,360,057
2010
financial Assets
Amount due from subsidiaries 200,161,363 - 200,161,363
Trade and other receivables 3,768 - 3,768
Cash and bank balances 13,836 - 13,836
200,178,967 - 200,178,967
financial liabilities
Amount due to subsidiaries - 36,541,335 36,541,335
Borrowings - 9,283 9,283
Trade and other payables - 184,297 184,297
- 36,734,915 36,734,915
(b) financial Risk Management and objectives
The Group seeks to manage effectively the various risks namely credit, interest rate, liquidity and foreign currency
risks, to which the Group is exposed to in its daily operations.
(i) Credit Risk
Credit risks, or the risk of counterparties defaulting, are controlled by application of credit approvals,
limits and monitoring procedures. Credit risks are minimised and monitored by strictly limiting the Group’s
associations to customers with high creditworthiness. Trade receivables are monitored on an ongoing basis
via Group management reporting procedures. The Group through its Directors and management reviews
all significant exposure to individual customers and counterparties and reviews any major concentration of
credit risk related to any financial instruments.
The management has a credit procedure in place to monitor and minimise the exposure of default. Trade
receivables and amount due from subsidiaries are monitored on a regular and an ongoing basis.
As at the end of the reporting period, there were no significant concentrations of credit risk in the Group and
the Company. The maximum exposure to credit risk for the Group and the Company is represented by the
carrying amount of each financial instrument.
MITRAJAYA HOLDINGS BERHAD ANNUAL REPORT 2011
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