274 REDISCOVER | REBUILD | SUSTAIN Notes to the financial statements - 31 December 2015 35. Financial risk management objectives and policies (cont’d.) (d) Credit risk (cont’d.) Trade receivables (cont’d.) At the reporting date, approximately: 21.7% (2014: 12.1%) of the Group’s trade receivables were due from related parties while 87.7% (2014: 90.8%) of the Corporation’s trade receivables were due from related parties. Other financial assets With respect to credit risk arising from the other financial assets of the Group, the Group’s exposure to credit risk arises from default of the counterparty, with a maximum exposure represented by the carrying amount of these instruments. Effective from 1 July 2013, cash and bank balances were held in the In-House Account Banking account managed by PETRONAS Integrated Financial Shared Services Centre (“IFSSC”). The centralisation of fund management allows more effective cash visibility, fund management for the Group and minimise exposure to counter party credit risk. The beneficiary of these financial assets remains with the Corporation. PETRONAS IFSSC, which functions as a treasury management platform, in turn, places all funds under management in licensed financial institutions with strong credit ratings globally and in Malaysia. In addition, a majority of the Group’s deposits are placed with licensed banks with strong credit ratings in Malaysia. (e) Equity price risk Equity price risk arises from the Group’s investment in quoted equity shares listed on Bursa Malaysia. At the reporting date, the fair value of the quoted equity shares was RM76,244,000 (2014: RM74,333,000).
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