2012 Annual Report - Media Prima Berhad

44 FINANCIAL RISK MANAGEMENT (CONTINUED)
Capital risk management (continued)
The AAA (bg) credit rating has been maintained throughout 2011 and 2012. The gearing ratios at 31 December 2012,
2011 and 1.1.2011 were as follows:
2012 2011 1.1.2011
RM’000 RM’000 RM’000
Debt instruments (Note 16) 448,497 246,932 314,265
Interest bearing bank borrowings (Note 18) 225,940 242,953 215,000
Hire purchase (Note 21) 8,309 13,712 21,095
Total debt 682,746 503,597 550,360
Total equity 1,558,836 1,455,450 1,324,322
Gearing ratio 0.44 0.35 0.42
The increase in the gearing ratio during 2012 was partly due to the drawdown of CPMTN during the financial year
(Note 16).
45 FAIR VALUE
Fair value
The carrying amounts of cash and cash equivalents, short term receivables and payables and short term borrowings
approximate fair values due to the relatively short term nature of these financial instruments.
The fair values of other financial assets and liabilities, together with the carrying amounts shown in the statement of
financial position, are as follows:
Group
RADIO OUTDOOR
NETWORKS
2012 2011 1.1.2011
Carrying Carrying Carrying
amount Fair value amount Fair value amount Fair value
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Investment in quoted shares ^ 2 2 86 86 125 125
Investment in property and
unit trusts^ – – 3,144 3,144 3,040 3,040
Investment in unquoted shares 2,613 2,613 1,488 1,488 1,208 1,208
Commercial paper medium
term notes (non-current)* 300,144 300,144 – – – –
Bank guarantee medium term
notes (non-current)* – – – – 99,226 99,226
Term loans (unsecured)
(non-current)* – – 187,000 187,000 201,000 201,000
Redeemable fixed rate bonds* 148,353 148,353 146,679 146,679 145,008 145,008
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