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211
Notes to the financial statements
31 December 2012
(continued)
Annual Report 2012 KPJ Healthcare Berhad
39. Financial risk management objectives and policies (continued)
(a) Credit risk (continued)
The Group seeks to invest cash assets safely and profitability and buys insurance to protect itself against insurable risk. In this regard, counterparties
are assessed for credit limits that are set to minimise any potential losses. The Group’s cash and cash equivalents and short term deposits are placed
with creditworthy financial institutions and the risks arising there from are minimised in view of the financial strength of these financial institution.
Exposure to credit risk
At the reporting date, the Group’s and the Company’s maximum exposure to credit risk is represented by:
-
The carrying amount of each class of financial assets recognised in the statements of financial position.
Information regarding credit enhancements for trade and other receivables is disclosed in Note 23.
Financial assets that are neither past due nor impaired
Information regarding trade receivables that are neither past due nor impaired is disclosed in Note 23. Cash and cash equivalents that are neither past
due nor impaired are placed with or entered into with reputable financial institutions.
Financial assets that are either past due or impaired
Information regarding trade receivables that are either past due or impaired is disclosed in Note 23.
Apart from those disclosed above, none of other financial assets is either past due or impaired.
(b) Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s
and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities.
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Group’s and of the Company’s liabilities at the reporting date based on contractual undiscounted
repayment obligations.
On demand
or within
One to five
Over five
one year
years
years
Total
RM’000
RM’000
RM’000
RM’000
2012
Group
Payables
404,139
-
-
404,139
Borrowings
212,543
27,679
350,848
591,070
Deposits
2,273
5,812
8,743
16,828
Total undiscounted financial liabilities
618,955
33,491
359,591 1,012,037
Company
Payables
187,036
60,763
113,519
361,318
Borrowings
120,000
-
-
120,000
Total undiscounted financial liabilities
307,036
60,763
113,519
481,318