Page 173 - S P Setia Annual Report 2013
P. 173

Annual Report 2013 S P SETIA BERHAD GROUP Financial Statements | 171





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






45. Financial RiSK manaGement OBJectiVeS anD POlicieS (cOnt’D)

(c) Foreign currency exchange risk (cont’d)
Group
2013 2012
Rm’000 Rm’000

GBP/RM - strengthened by 5% (29,000) (21,000)
- weakened by 5% 29,000 21,000

SGD/RM - strengthened by 5% (12,000) (19,000)
- weakened by 5% 12,000 19,000

(d) Liquidity and cash fow risks

Liquidity and cash fow risks are the risks that the Group and the Company will not be able to meet its fnancial obligations when they
fall due. The Group’s and the Company’s exposure to liquidity risk arises principally from its various payables and borrowings.

The Group and the Company seek to ensure all business units maintain optimum levels of liquidity at all times, suffcient for their
operating, investing and fnancing activities.

Therefore, the policy seeks to ensure that each business unit, through effcient working capital management (i.e. inventory, accounts
receivable and accounts payable management), must be able to convert its current assets into cash to meet all demands for payment
as and when they fall due.
Owing to the nature of its businesses, the Group and the Company always maintain suffcient credit lines available to meet their
liquidity requirements while ensuring an effective working capital management within the Group and the Company.

Analysis of fnancial instruments by remaining contractual maturities
The table below summarises the maturity profle of the Group’s and the Company’s fnancial liabilities at the reporting date based on
contractual undiscounted repayment obligations.
2013
Rm’000
On demand
or within One to fve Over fve
one year years years total

Group

Financial liabilities:
Trade payables 546,434 - - 546,434
Other payables and accruals 985,616 - - 985,616
Long term borrowings - 3,876,296 287,883 4,164,179
Short term borrowings 553,554 - - 553,554
Bank overdrafts 60,875 - - 60,875
Total undiscounted fnancial liabilities 2,146,479 3,876,296 287,883 6,310,658
   168   169   170   171   172   173   174   175   176   177   178