Amtel Holdings Berhad - Company Announcements - Bursa Malaysia

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40. FINANCIAL INSTRUMENTS (CONT’D) (i) Foreign Exchange Risk (Cont’d) Functional currency of the Group United States Dollar Euro Total RM RM RM Cash on Deposits with Licensed Financial Institutions Ringgit Malaysia 1,140,000 - 1,140,000 Cash and Bank Balances Ringgit Malaysia 155,475 - 155,475 Trade Payables Ringgit Malaysia 9,711,926 - 9,711,926 (ii) Interest Rate Risk The Group’s exposure to interest rate risk relates to:- - Interest bearing financial assets Cash on deposits are short term in nature and are mostly placed in fixed deposits which yield better returns than cash at bank and to satisfy conditions for banking facilities granted to the Group, as mentioned in note 16 to the financial statements. - Interest bearing financial liabilities Interest bearing financial liabilities include hire purchase payables, bank overdrafts, term loans, bills payable and revolving credits. More than 80% of the Group’s borrowings are short term to finance the working capital needs of the Group and the exposure to interest rate risk is minimal. The Group manages its interest rate exposure by maintaining a prudent mix of fixed and floating rate borrowings and to obtain the most favourable interest rates available. The Group actively reviews its debt portfolio to ensure minimal exposure against interest rate hikes. The effective interest rates at 30 November, 2003 and the periods in which the financial assets and liabilities reprice or mature, whichever is earlier, are as follows:- GROUP Financial Assets NOTES TO THE FINANCIAL STATEMENTS (Cont’d) ‹------------- Maturities ------------› Effective Interest Within 1 - 5 After 5 Rate Total 1 Year Years Years % RM RM RM RM Cash deposits with licensed banks and finance company 0.8 - 4.0 6,322,262 6,322,262 - - Amtel Holdings Berhad 2003 annual report 69
70 NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 40. FINANCIAL INSTRUMENTS (CONT’D) (ii) Interest Rate Risk (Cont’d) GROUP Financial Liabilities ‹------------- Maturities ------------› Effective Interest Within 1 - 5 After 5 Rate Total 1 Year Years Years % RM RM RM RM Hire purchase payables 3.75 - 11.25 1,335,431 489,595 775,821 70,015 Term loans 5.0 - 8.5 2,622,091 770,629 1,851,462 - Bank overdrafts 7.75 - 8.95 873,599 873,599 - - Revolving credit 8.4 5,610,000 5,610,000 - - Bill payables 5.0 - 8.0 2,760,000 2,760,000 - - COMPANY Financial Liabilities Hire purchase payables 7.04 - 7.23 382,446 66,366 278,092 37,988 (iii) Market Risk The Group’s exposure to market risk arises from the quoted investments held for long term and short term purposes. As the major of quoted investments held are short term in nature, the quoted investments held is not significant, hence exposure to market risk is minimal. (iv) Credit Risk The Group’s exposure to credit risk arises from its receivables and the maximum risk associated with recognised financial assets is the carrying amounts as presented in the balance sheet. The Group has a credit policy in place and the exposure to credit risk is managed through the application of credit approvals, credit limits and monitoring procedures. Trade debtors are monitored on an ongoing basis via the Group’s management reporting procedures. As at balance sheet date, the Group has a significant concentration of credit risk in the form of outstanding balance from one customer representing 40% of total trade receivables. (v) Liquidity and Cash Flow Risks (b) Fair Values The Company 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 Company maintains sufficient level of cash to meet its working capital requirements. In addition, the Company strives to maintain available banking facilities of a reasonable level to its overall debt position. The methods and assumptions used to estimate the fair value of the following classes of financial assets and liabilities are as follows:- (i) Cash Deposits, Cash and Bank Balances, Trade and Other Receivables and Payables Amtel Holdings Berhad 2003 annual report The carrying amounts approximate fair values due to the relatively short term maturity of these financial assets and liabilities.
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2003 Annual Report Amtel Holdings B
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2 Notice of the Seventh Annual Gene
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4 Statement Accompanying Notice of
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6 Profile of Directors Amtel Holdin
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8 Amtel Holdings Berhad 2003 annual
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10 Amtel Holdings Berhad 2003 annua
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16 Chairman’s Statement It gives
Page 19 and 20: 18 Amtel Holdings Berhad 2003 annua
Page 23 and 24: 22 Statement of Internal Control Am
Page 27 and 28: 26 DIRECTORS’ REPORT The Director
Page 29 and 30: 28 DIRECTORS OF THE COMPANY (CONT
Page 31 and 32: 30 REPORT OF THE AUDITORS to the me
Page 33 and 34: 32 BALANCE SHEETS (Cont’d) GROUP
Page 35 and 36: 34 STATEMENTS OF CHANGES IN EQUITY
Page 37 and 38: 36 CASH FLOW STATEMENTS (Cont’d)
Page 39 and 40: 38 NOTES TO THE FINANCIAL STATEMENT
Page 69: 68 NOTES TO THE FINANCIAL STATEMENT
Page 75 and 76: 74 LIST OF PROPERTIES (Cont’d) Ap
Page 77 and 78: 76 LIST OF PROPERTIES (Cont’d) Ap
Page 79 and 80: 78 ANALYSIS OF SHAREHOLDINGS as at
Page 81 and 82: 80 ANALYSIS OF SHAREHOLDINGS (Cont
Page 83 and 84: Then fold here First fold here Amte
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