ANNUALREPORT 2013
75
Notes to theFinancial Statements
(Cont’d)
3) FINANCIALRISKMANAGEMENTOBJECTIVESANDPOLICIES
(Cont’d)
The ageing of trade receivables as at the end of the reporting periodwas:
GROUP
2013
2012
RM
RM
Not past due
1,724,606 3,929,086
Past due 0 - 30 days
1,628,524 3,231,159
Past due 31 - 60 days
1,693,336
484,490
Past due 61 - 90 days
1,941,274
164,764
Past due 91 - 120 days
16,800
16,800
Past duemore than 120 days
3,177,446
215,673
10,181,986 8,041,972
Therewasnomovement in theallowance for impairment lossesof receivablesduring thefinancial
year.
Interest rate risk
Interest rate risk is the risk that the fairvalueor futurecashflowsof theGroup’sfinancial instruments
will fluctuatebecauseof changes inmarket interest rates.
TheGroup’s investment in financial assets aremainly short term in nature andmostly placed in
financial deposits.
Interest rate risk sensitivity
The following demonstrates the sensitivity of the Group’s profit before tax to a 100 basis point
(2012: 100basispoint) increase/decrease in interest rateswithall other variablesheld constant:
GROUP
2013
2012
RM
RM
Increase/Decrease in profit before tax
–
45,711
Liquidity risk
Liquidity risk is the risk that theGroupwill not beable tomeet itsfinancial obligationsasandwhen
they fall due.
The Group practises prudent liquidity risk management to minimise the mismatch of financial
assetsand liabilitiesand tomaintainsufficient funds forcontingent funding requirementofworking
capital.
