TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
118
NOTES TO THE FINANCIAL STATEMENTS
33. Financial instruments (continued)
33.5 Liquidity risk (continued)
Maturity analysis (continued)
Contractual
interest
rate
Carrying
amount
Not later
than
2 years
More than
2 years
but not
later
than 5
years
More
than
5 years
Contractual
cash flows
Not later
than 1
year
More than
1 year but
not later
than 5
years
More
than
5 years
% RM’000 RM’000 RM’000 RM’000
RM’000 RM’000 RM’000 RM’000
Company
2014
Non-derivative financial
liabilities
Medium Term Notes
4.50 – 4.70 746,591
-
248,916 497,675
967,230 35,244 386,654 545,332
Amount due to subsidiaries
- Non-current
5.75
380,212
-
380,212
-
402,074
-
402,074
-
- Current
4.00 – 4.53 82,365 82,365
-
-
82,365 82,365
-
-
Payables and accruals
-
5,492 5,492
-
-
5,492 5,492
-
-
1,214,660 87,857 629,128 497,675
1,457,161 123,101 788,728 545,332
2013
Non-derivative financial
liabilities
Term loans
4.70 – 4.90 50,000 50,000
-
-
51,618 51,618
-
-
Amount due to subsidiaries
- Non-current
5.55
236,394
-
236,394
-
262,634
-
262,634
-
- Current
2.65 – 3.70 216,935 216,935
-
-
216,935 216,935
-
-
Payables and accruals
-
1,444 1,444
-
-
1,444 1,444
-
-
504,773 268,379 236,394
-
532,631 269,997 262,634
-
33.6 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates that will
affect the Group’s financial position or cash flows.
33.6.1 Currency risk
The Group is exposed to foreign currency risk on sales, purchases and borrowings that are denominated
in currencies other than the respective functional currencies of the Group entities. The currencies giving
rise to this risk are primarily US Dollar (“USD”) and Japanese Yen (“JPY”).
Risk management objectives, policies and processes for managing the risk
The Group hedges its foreign currency denominated trade payables. Derivative financial instruments like
forward exchange contracts are used to reduce exposure to fluctuations in foreign exchange rates. The
Group avoids using leverage derivatives for hedging purposes and also does not hedge for speculative
purposes. Most of the forward exchange contracts have maturities of less than one year after the end of
the reporting period.
