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241
Gamuda Berhad (29579-T) • Annual Report 2012
44. Financial risk management objectives and policies (cont’d.)
(b)
Liquidity risk (cont’d.)
2011
On demand
or within
One to
Over five
one year
five years
years
Total
RM’000
RM’000
RM’000
RM’000
Company
Financial liabilities:
Trade and other payables
52,155
4,918
-
57,073
Amount due to subsidiaries
151,283
-
-
151,283
Loans and borrowings
- Principal
495,422
800,000
-
1,295,422
- Interest
49,559
60,431
-
109,990
Total undiscounted financial liabilities
748,419
865,349
-
1,613,768
Hedging activities
The Group and the Company entered into interest rate swaps to hedge the cash flow risk in relation to the
floating interest rate on certain USD denominated borrowings. The interest rate swaps with contract value of
USD45,000,000, equivalent to RM143,222,000 (2011: USD45,000,000, equivalent to RM133,497,000) are
settled every quarterly.
The following table indicates the periods in which the cash flows are expected to occur for cash flow hedges:
Contractual
Within
cash flows
1 year
1 - 3 years
RM’000
RM’000
RM’000
Net cash outflows
6,848
2,567
4,281
The Group’s hedging activities on the interest rate swaps are tested to be effective and during the year a net
loss of RM1,471,000 (2011: RM2,277,000) was recognised in equity.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012