Connecting the nation. and Beyond. - ChartNexus

4 FINANCIAL RISK MANAGEMENT (cont’d)
(i) Interest rate risk (cont’d)
The Group manages this risk through the use of fixed and floating rate debt.
The Group’s outstanding borrowings as at year end at variable rates on which hedges have not been entered into,
are denominated in RM. If the RM annual interest rates increase/decrease by 1% respectively (2010: 1%) with all
other variables including tax rate being held constant, the result after tax will be lower/higher by 4% (2010: 5%) as
a result of higher/lower interest expense on these borrowings.
(ii) Liquidity and cash flow risk
The Group manages its liquidity risk by maintaining sufficient levels of cash or cash convertible investments and
available credit facilities to meet its working capital requirements.
The table below analyses the financial liabilities of the Group and the Company into relevant maturity groupings
based on the remaining period from the balance sheet date to the contractual maturity date. The amounts disclosed
in the table are the contractual undiscounted cash flows.
The Group
At 31 December 2011
Within Between 1 Over 5
1 year and 5 years years
RM’000 RM’000 RM’000
Trade and other payables 1,059,444 492 –
Borrowings 394,784 907,663 26,469
Sukuk 81,843 327,374 1,611,580
At 31 December 2010
/ MRCB laporan tahunan 2011 / 189
1,536,071 1,235,529 1,638,049
Trade and other payables 864,686 1,225 13
Borrowings 409,170 640,621 299,696
Sukuk 81,843 327,374 1,693,424
1,355,699 969,220 1,993,133