2019 UEM Edgenta Annual Report

250 251 UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Notes to the Financial Statements For the year ended 31 December 2019 Notes to the Financial Statements For the year ended 31 December 2019 UEM Edgenta Berhad Annual Report 2019 42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (d) Interest rate risk (cont’d.) Note WAEIR % Within 1 year RM’000 1-2 years RM’000 2-5 years RM’000 > 5 years RM’000 Total RM’000 At 31 December 2018 Group Fixed rate Deposits with licensed banks and other financial institutions 24 2.98 264,106 - - - 264,106 ICPs 29 4.37 (50,000) - - - (50,000) IMTNs 29 4.85 (2,190) - (249,625) - (251,815) Finance leases 30 4.71 (1,101) (1,132) (894) - (3,127) Floating rate Murabahah Term Facility 29 3.99 (31,461) (31,566) (38,038) - (101,065) Term loans 29 3.88 (39,708) (8,992) (30,227) (47,531) (126,458) Company Fixed rate Deposits with licensed banks and other financial institutions 24 3.25 27,126 - - - 27,126 ICPs 29 4.37 (50,000) - - - (50,000) IMTNs 29 4.85 (2,190) - (249,625) - (251,815) Interest on financial instruments subject to floating interest rates is contractually repriced at intervals of less than 12 months. Interest on financial instruments at fixed rates are fixed until the maturity of the instruments. The other financial instruments of the Group and of the Company that are not included in the above tables are not subject to interest rate risks. 42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.) (e) Market price risk Market price risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market prices (other than interest or exchange rates). The Group is not exposed to equity price risk arising from its investment in quoted equity instruments. (f) Fair value Financial instruments that are not measured at fair value and whose carrying amounts are reasonable approximation of fair value Included in these classes of financial instruments are certain financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value: Note Trade and other receivables 21 Cash, bank balances and deposits 24 Borrowings 29 Trade and other payables 31 The carrying amounts of these financial assets and financial liabilities are reasonable approximation of fair values due either to the short term nature or insignificant impact of discounting or that they are floating rate instruments that are re-priced to market interest rates on or near the reporting date. Determination of fair value The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities: Significant observable inputs Level 2 RM’000 Group 2019 Assets measured at fair value: Short term investments* 62,463 2018 Assets measured at fair value: Short term investments** 107,178 * The valuation date of these financial instruments is 31 December 2019. ** The valuation date of these financial instruments is 31 December 2018. There have been no transfers between levels during the period. Short term investments are valued based on currently available deposits with similar terms and maturities.