MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...
MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...
MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...
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Notes to The Financial Statements (cont’d)<br />
35. fINANCIAl INSTRUMENTS (CoNT’D)<br />
(b) financial Risk Management and objectives (cont’d)<br />
(ii) Interest Rate Risk (cont’d)<br />
Interest rate risk sensitivity<br />
An increase in market interest rates by 1% on financial assets and financial liabilities of the Company<br />
which have variable interest rates at the end of the reporting period would decrease the profit before tax by<br />
RM551,204/- (2010: RM886,688/-). This analysis assumes that all other variables remain unchanged.<br />
A decrease in market interest rates by 1% on financial assets and liabilities of the Company which have<br />
variable interest rates at the end of the reporting period would have had the equal but opposite effect on the<br />
amounts shown above, on the basis that all other variables remain unchanged.<br />
(iii) Liquidity Risk<br />
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations<br />
due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from<br />
mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective<br />
is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit<br />
facilities.<br />
Analysis of financial instruments by remaining contractual maturities<br />
The table below summarises the maturity profile of the Group’s and the Company’s liabilities at the end of<br />
the reporting period based on contractual undiscounted repayment obligations.<br />
Group<br />
2011<br />
on demand<br />
or within<br />
one year<br />
one to<br />
five years<br />
over<br />
five years Total<br />
RM RM RM RM<br />
financial liabilities<br />
Borrowings 27,954,642 19,699,639 9,778,232 57,432,513<br />
Trade and other payables 77,650,052 - - 77,650,052<br />
105,604,694 19,699,639 9,778,232 135,082,565<br />
2010<br />
financial liabilities<br />
Borrowings 45,971,315 32,059,867 12,290,321 90,321,503<br />
Trade and other payables 86,845,792 - - 86,845,792<br />
132,817,107 32,059,867 12,290,321 177,167,295<br />
<strong>MITRA</strong>JAYA HOLDINGS BERHAD ANNUAL REPORT 2011<br />
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