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