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35. FinAnCiAl inStRumentS (Cont’D)
(c) Foreign currency risk (cont’d)
net Financial Assets/(liabilities) held in non-Functional Currency
united great
Functional Currency States Singapore Britain Brunei india indonesia
of group Companies Dollar Dollar euro Pound Dollar Rupee Rupiah others total
At 31 January 2009 (cont’d)
Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 Rm’000
trade and other
Payables
Ringgit Malaysia (572,371) (14,439) (11,459) — (15) (8,874) (5) (14) (607,177)
Singapore Dollar (6,746) — (21) (1,199) — — (215) (298) (8,479)
Australian Dollar — — — — — — — — —
(579,117) (14,439) (11,480) (1,199) (15) (8,874) (220) (312) (615,656)
Borrowings
Ringgit Malaysia (80,150) — — — — — — — (80,150)
(d) liquidity risk
The Group actively manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that
all refinancing, repayment and funding needs are met. As part of its overall prudent liquidity management, the Group maintains
sufficient levels of cash or cash convertible investments to meet its working capital requirements. In addition, the Group strives
to maintain available banking facilities of a reasonable level to its overall debt position. As far as possible, the Group raises
committed funding from both capital markets and financial institutions and prudently balances its portfolio with some short term
funding so as to achieve overall cost effectiveness.
(e) interest rate risk
The Group’s primary interest rate risk relates to interest-bearing borrowings and the Group has no substantial long term interestbearing
assets as at 31 January 2010. The investment in financial assets are mainly short term in nature and they are not held
for speculative purposes but have been mostly placed in fixed deposits.
he Group manages its interest rate exposure by maintaining a prudent mix of fixed and floating rate borrowings. The Group
actively reviews its debt portfolio, taking into account the investment holding period and nature of its assets. This strategy allows
it to capitalise on cheaper funding in a low interest rate environment and achieve a certain level of protection against rate hikes.
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SapuraCrest Petroleum Berhad
Annual Report 2010