Page 186 - KPJ_2011

(c) Interest rate risk
Interest rate risk is the risk that the fair value of future cash nows of the Group’s and the Company’s mnancial
instruments will nuctuate because of changes in market interest rates.
The Group’s and the Company’s exposure to interest rate risk arises primarily from their loans and borrowings.
The Group’s policy is to manage interest cost using a mix of mxed and noating rate debts.
Sensitivity analysis for interest rate risk
At the reporting date, if interest rates had been 10 basis points lower/higher, with all other variables held constant,
the Group’s promt net of tax would have been RM249,215 higher/lower, arising mainly as a result of lower/
higher interest expense on noating rate loans and borrowings. The assumed movement in interest rate for interest
rate sensitivity analysis is based on the currently observable market environment.
39. Financial risk management objectives and policies (continued)
(b) Liquidity risk (continued)
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity promle of the Group’s and of the Company’s liabilities at the reporting
date based on contractual undiscounted repayment obligations.
31 December 2011
Group
Payables 335,229 - - 335,229
Borrowings 142,048 52,615 250,548 445,211
Deposits - 9,830 5,665 15,495
Total undiscounted mnancial liabilities 477,277 62,445 256,213 795,935
Company
Payables 91,570 152,942 281,702 526,214
Borrowings 65,000 - - 65,000
Total undiscounted mnancial liabilities 156,570 152,942 281,702 591,214
31 December 2010
Group
Payables 308,107 - - 308,107
Borrowings 362,676 36,741 6 399,423
Deposits - 8,776 5,006 13,782
Total undiscounted mnancial liabilities 670,783 45,517 5,012 721,312
Company
Payables 67,432 161,989 42,395 271,816
Borrowings 299,000 - - 299,000
Total undiscounted mnancial liabilities 366,432 161,989 42,395 570,816
Over five
years
RM’000
One to five
years
RM’000
On demand or
within one year
RM’000
Total
RM’000
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued)
181 ANNUAL REPORT 2011