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GHL Systems Berhad
(293040-D)
Annual report 2015
Notes to the Financial Statements
31 December 2015 (continued)
36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(b) Liquidity and cash flow risk (continued)
On demand
or within one
year
One to five
years
Over five
years
Total
As at 31 December 2014
RM
RM
RM
RM
Group
Financial liabilities
Borrowings
29,812,279 11,933,818
-
41,746,097
Trade and other payables
53,604,876
-
-
53,604,876
Total undiscounted financial liabilities
83,417,155 11,933,818
-
95,350,973
Company
Financial liabilities
Borrowings
119,508
224,011
-
343,519
Trade and other payables
4,593,381
-
-
4,593,381
Total undiscounted financial liabilities
4,712,889
224,011
-
4,936,900
(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.