KUMPULAN FIMA ANNUAL REPORT 2017 Background Image
Previous Page  207 / 232 Next Page
Information
Show Menu
Previous Page 207 / 232 Next Page
Page Background

Annual Report 2017

205

Notes to the

financial statements

31 march 2017

37. Financial risk management objectives and policies (cont’d.)

(d) Credit Risk

Credit risk, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits and monitoring

procedures. Credit risk is minimised and monitored via strictly limiting the Group’s associations to business partners

with high creditworthiness. Trade receivables are monitored on an ongoing basis via Group management reporting

procedures.

The Group does not have any significant exposure to any individual customer or counterparty except with the government

agencies as disclosed in Note 20. The Group does not have any major concentration of credit risk related to any financial

instruments.

38. Capital management

The primary objective of the Group’s capital management is to ensure that it maintains an optimal capital structure in order to

support its businesses and maximise shareholders’ value.

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain

or adjust the capital structure, the Group may adjust the dividend payment to shareholders. The Group’s approach in managing

capital is based on defined guidelines that are approved by the Board.

There were no changes in the Group’s approach to capital management during the year.