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