126
JAYA TIASA HOLDINGS BERHAD
Notes to the Financial Statements (cont’d)
for the financial year ended 30 June 2015
36. Financial risk management objectives and policies (cont’d)
(b) Liquidity risk (cont’d)
Analysis of financial instruments by remaining contractual maturities (cont’d)
On demand
or within
One to
Over five
one year
five years
years
Total
RM’000
RM’000
RM’000
RM’000
As at 30 June 2014
Group
Financial liabilities:
Trade and other payables,
excluding financial guarantees
315,646
–
–
315,646
Loans and borrowings
547,552
344,328
2,078
893,958
Derivatives - Cross currency swap
666
–
–
666
Total undiscounted financial
liabilities
863,864
344,328
2,078
1,210,270
Company
Financial liabilities:
Trade and other payables,
excluding financial guarantees*
153,696
–
–
153,696
Loans and borrowings
190,512
5,740
–
196,252
Derivatives - Cross currency swaps
666
–
–
666
Total undiscounted financial
liabilities
344,874
5,740
–
350,614
*
At the reporting date, the counterparties to the financial guarantees do not have a right to demand cash
as the defaults have not occurred. Accordingly, financial guarantees under the scope of FRS 139 are
not included in the above maturity profile analysis.
(c)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Company’s financial
instruments will fluctuate because of changes in market interest rates.
As the Group and the Company have no significant interest-bearing financial assets, the Group’s and the
Company’s income and operating cash flows are substantially independent of changes in market interest rates.
The Group’s and the Company’s interest rate risk arises primarily from interest-bearing borrowings. Borrowings
at floating rates expose the Group and the Company to cash flow interest rate risk. Borrowings obtained at
fixed rates expose the Group and the Company to fair value interest rate risk.
Interest on financial instruments at fixed rates are fixed until the maturity of the instruments. The other financial
instruments of the Group and of the Company that are not shown above are not subject to interest rate risks.
The Group’s policy is to manage interest cost using a mix of fixed and floating rate borrowings.
