Download PDF - ChartNexus

annual report | 2012 Gunung Capital Berhad (330171-P)
92
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
31 DECEMBER 2012
38 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d)
(b) Credit Risk (cont’d)
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of
trade and other receivables as appropriate. Impairment is determined by management based on prior experience
and the current economic environment.
Credit risk concentration profile
The Group’s major concentration of credit risk relates to the amounts owing by two customers which constituted
approximately 89% of its trade receivables as at the end of the reporting period.
Exposure to credit risk
As the Group does not hold any collateral, the maximum exposure to credit risk is represented by the carrying
amounts of the financial assets as at the end of the reporting period.
Information regarding credit enhancements for trade receivables is disclosed in Note 10.
Further information regarding the corporate guarantees provided by the Company is disclosed in Note 34.
(c) Liquidity Risk
Liquidity risk is the risk that the Group and the Company will encounter difficulties in meeting financial obligations
due to shortage of funds. The Group and the Company practice prudent liquidity risk management to minimise
the mismatch of financial assets and liabilities and to maintain sufficient credit facilities for contingent funding
requirement of working capital. The Group and the Company reviews its cash flow position regularly to manage
its exposure to fluctuations in future cash flows associated with its monetary financial instruments.
The following table sets out the maturity profile of the financial liabilities as at the end of the reporting period
based on contractual undiscounted cash flows (including interest payments computed using contractual rates, or,
if floating, based on the rates at end of the reporting period):
Group
2012
Carrying
amount
RM
Contractual
undiscounted
cash flows
RM
On demand
or within
one year
RM
One to five
years
RM
Financial liabilities
Trade payables 1,568,010 1,568,010 1,568,010 -
Other payables 11,198,955 11,198,955 11,198,955 -
Finance lease and hire purchase payables 41,558,083 45,171,450 19,553,106 25,618,344
Bank borrowings - - - -
Shareholder’s advance 1,726,811 1,726,811 - 1,726,811
2011
56,051,859 59,665,226 32,320,071 27,345,155
Financial liabilities
Trade payables 2,363,185 2,363,185 2,363,185 -
Other payables 32,317,554 32,317,554 32,317,554 -
Finance lease and hire purchase payables 53,421,325 59,806,900 20,387,564 39,419,336
Bank borrowings 3,943,546 3,943,546 3,943,546 -
Shareholder’s advance 6,231,949 6,231,949 - 6,231,949
98,277,559 104,663,134 59,011,849 45,651,285