Bursa Malaysia • Annual Report 2013
166
Financial Reports
35. Financial risk management objectives and policies (cont’d.)
(d) Liquidity risk (cont’d.)
(ii) Clearing and settlement related risk (cont’d.)
The liabilities and corresponding assets in relation to clearing and settlement risk as at the financial year end are shown below:
On demand
2013
2012
RM’000
RM’000
Group
Current assets
Cash and bank balances not belonging to the Group
769,692
1,173,172
Current liabilities
Trade payables
(734,318)
(1,137,234)
CPs and TCPs contributions to clearing funds
(35,374)
(35,938)
-
-
(e) Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Group and the
Company are exposed to credit risk primarily from investment securities, staff loans receivable, trade receivables, other receivables which are financial
assets and cash and bank balances with financial institutions.
As at the current and previous financial year end, the Group 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.
For investment securities and cash and bank balances with financial institutions, the Group and the Company minimise credit risk by adopting an
investment policy which allows dealing with counterparties with good credit ratings only. Receivables are monitored to ensure that exposure to bad
debts are minimised.
Notes to the Financial Statements
31 December 2013
