2004 - Hiap Teck Venture Berhad

31. FINANCIAL INSTRUMENTS (CONT’D)
(d)
Credit Risk
Credit risks, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits
and monitoring procedures. Credit risks are minimised and monitored via strictly limiting the Group’s
associations to business partners with high creditworthiness.
(e)
Foreign Exchange Risk
The Group is mainly exposed to United States Dollars and Singapore Dollars. Foreign currency denominated
assets and liabilities together with expected cash flows from highly probable purchases and sales give rise
to foreign exchange exposures.
Foreign exchange exposures in transactional currencies are kept to an acceptable level.
The net unhedged financial assets and financial liabilities of the Group that are not denominated in their
functional currencies are as follows:
Functional Currency
US Singapore Euro
Dollars Dollars Dollars Total
RM'000 RM'000 RM'000 RM'000
At 31 July 2004:
Trade receivables 11,320 17,814 - 29,134
Cash and cash equivalents - 824 - 824
At 31 July 2003:
11,320 18,638 - 29,958
Trade receivables 7,952 13,716 - 21,668
Cash and cash equivalents - 97 - 97
Trade payables (360) (44) (49) (453)
7,592 13,769 (49) 21,312
(f)
Fair Value
It is not practicable to determine the fair value of amounts due from/(to) subsidiaries due to principally lack
of fixed repayment terms entered into by the parties involved and without incurring excessive costs.
The fair value of all other financial assets and financial liabilities approximate their carrying value due to the
relatively short term nature of these financial instruments.
32. CAPITAL COMMITMENT
Capital expenditure:
GROUP
2004 2003
RM'000 RM'000
Approved and contracted for plant and equipment 36,000 -
HIAP TECK VENTURE BERHAD
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