Hatching For The Future - teo seng capital berhad

Teo Seng Capital Berhad
Notes To The Financial Statements
For The Financial Year Ended 31 March 2012
36. FINANCIAL INSTRUMENTS (cont’d)
36.3 Classification Of Financial Instruments (cont’d)
Group
Company
2012 2011 2012 2011
RM RM RM RM
Financial liabilities
Fair value through profit or loss
Derivative liabilities - 948 - -
Other financial liabilities
Trade and other payables 23,050,326 18,804,964 10,972,782 9,350,933
Bank borrowings 51,864,429 47,676,485 - -
Hire purchase payables 14,405,687 8,339,755 - -
89,320,442 74,821,204 10,972,782 9,350,933
36.4 Fair Values of Financial Instruments
The carrying amounts of the financial assets and financial liabilities reported in the financial statements
approximated their fair values based on the methods summarised as follows :
(i)
The carrying amounts of cash and cash equivalents, receivables, payables and short-term bank borrowings
approximately their fair values due to the relatively short-term maturity of the financial instruments.
(ii)
The fair value of quoted investments is estimated based on their quoted market prices as at the end of the
reporting period.
(iii) The carrying amounts of hire purchase payables are reasonably approximate their fair values due to
insignificant impact of discounting.
(iv) The carrying amounts of the term loans approximated their fair values as these instruments bear interest at
variable rates.
(v) The fair value of forward foreign exchange contracts is estimated by discounting the difference between the
contractual forward price and the current forward price for the residual maturity of the contract using a
risk-free interest rate.
36.5 Fair Value Hierarchy
The fair values of the financial assets and liabilities are analysed into level 1 to 3 as follows :
Level 1 :
Fair value measurements derive from quoted prices (unadjusted) in active markets for identical assets
or liabilities.
Level 2 :
Level 3 :
Fair value measurements derive from inputs other than quoted prices included within level 1 that are
observable for the asset or liability, either directly or indirectly.
Fair value measurements derive from valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
Annual Report 2012
The Group has carried its other investments of RM 6,040 at their fair values. These financial asset belong to level
1 of the fair value hierarchy.
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