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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)
(c) Interest rate risk (continued)
Weighted
average
effective
interest
rate
Within 1
year
1 - 2
years
2 - 3
years
3 - 4
years
4 - 5
years
More than
5 years
Total
Note per annum RM RM RM RM RM RM RM
%
Company
At 31 December 2015
Fixed rates
Hire purchase creditors
21
4.45 112,532 98,652
3,717
-
-
-
214,901
Floating rates
Term loans
20
3.53 4,293,500
-
-
-
-
- 4,293,500
At 31 December 2014
Fixed rates
Amounts owing by subsidiaries 13
4.70 14,999,187 3,215,493 1,665,048 611,267 322,037
- 20,813,032
Deposits with licensed banks
16
2.95 721,705
-
-
-
-
-
721,705
Hire purchase creditors
21
4.63 107,614 112,533 98,651
3,717
-
-
322,515
(d) Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument would
fluctuate because of changes in foreign exchange rates.
Subsidiaries operating in Australia, Philippines and Thailand have assets and liabilities together with
expected cash flows from anticipated transactions denominated in foreign currencies that give rise to
foreign exchange exposures.
The Group also hold cash and cash equivalents denominated in foreign currencies for working capital
purposes.