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laporan tahunan | annual report200432. CONTINGENT LIABILITIESCorporate guarantees given to financial institutions for banking facilitiesgranted to subsidiary companies which are:Company2004 2003RM'000 RM'000- Secured 150,000 73,50433. RELATED PARTY TRANSACTIONSCompany2004 2003RM'000 RM'000Management bonus charged to subsidiary companies 5,200,000 -The directors are of the opinion that all the transactions above have been entered into in the normal courseof business and have been established on terms and conditions that are not materially different from thoseobtainable in transactions with unrelated parties.34. SUBSEQUENT EVENTOn 26 January 2005, Health Medicmaster Sdn Bhd ("HMSB"), a subsidiary of the Company has entered into aconditional Share Sale Agreement with Rosli bin Awang Abdul Rahman to dispose 74,999 ordinary sharesrepresenting 99.99% of issued and paid up capital in HMMC (Subang) Sdn Bhd for a total consideration of RM1.00and repayment of inter-companies balance of RM67,000 to HMSB.35. FINANCIAL INSTRUMENTS(a) Financial Risk Management Objectives and PoliciesThe Group’s financial risk management policy seeks to ensure that adequate financial resources are availablefor the development of the Group’s businesses whilst managing its interest rate, foreign exchange,liquidity and credit risks. The Group operates within clearly defined guidelines that are approved by theBoard and the Group’s policy is to not engage in speculative transactions.(b) Interest Rate RiskThe Group’s primary interest rate risk relates to interest-bearing debt, as the Group had no substantial long-terminterest-bearing assets as at 31 December 2004. The investment in financial assets are mainly short termin nature and they are not held for speculative purposes but have been mostly placed in fixed depositsor occasionally, in short term commercial papers which yield better returns than cash at bank.The Group manages its interest rate exposure by maintaining a prudent mix of fixed and floating rateborrowings. The Group actively reviews its debt portfolio, taking into account the investment holdingperiod and nature of its assets. This strategy allows it to capitalise on cheaper funding in a low interestrate environment and achieve a certain level of protection against rate hikes.(c) Foreign Exchange RiskForeign exchange exposures in transactional currencies other than functional currencies of the operatingentities are kept to an acceptable level.The net unhedged financial assets and financial liabilities of the Group companies as at 31 December 2004that are not denominated in their functional currencies is expected to be immaterial.100