152
GHL Systems Berhad
(293040-D)
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014 (continued)
36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the financial instruments of the Group
and of the Company would fluctuate because of changes in market interest rates.
The exposure of the Group and of the Company to interest rate risk arises primarily from their borrowings.
Sensitivity analysis for interest rate risk
The exposure to interest rate risk of the Group and of the Company is not significant and therefore,
sensitivity analysis is not presented.
The following tables set out the carrying amounts, the weighted average effective interest rates as at
the end of each reporting period and the remaining maturities of the financial instruments of Group
and of the Company that are exposed to interest rate risk:
Weighted
average
effective Within
1 - 2
2 - 3
3 - 4
4 - 5 More than
interest rate 1 year
years
years
years
years
5 years
Total
Note per annum RM RM RM RM RM RM RM
%
Group
At 31 December 2014
Fixed rates
Deposits with licensed
banks
16
2.95 7,102,550
-
-
-
-
- 7,102,550
Hire purchase creditors
- RM
- PHP
21
21
4.45
6.45
218,213
1,533,465
228,134
1,754,033
201,582
2,393,835
53,006
-
-
-
-
-
700,935
5,681,333
Bankers’ acceptance 22
3.99 15,000,000
-
-
-
-
- 15,000,000
Islamic facility
22
5.08 6,000,000
-
-
-
-
- 6,000,000
Term loans
20
3.29 5,878,123 3,813,615 341,226 350,866 1,139,458
- 11,523,288
Floating rates
Term loans
20
5.00 520,080 520,080 520,080
-
-
- 1,560,240
At 31 December 2013
Fixed rates
Deposits with licensed
banks
16
2.95 117,310
-
-
-
-
-
117,310
Hire purchase creditors
- RM
- PHP
21
21
4.52
10.37
167,391
440,783
147,757
-
115,925
-
98,651
-
3,717
-
-
-
533,441
440,783
