APM AUTOMOTIVE HOLDINGS BERHAD
108
NOTES TO THE
FINANCIAL STATEMENTS
35. Financial risk management (continued)
35.3 Market risk (continued)
35.3.1 Currency risk (continued)
As foreign currency risks arising from Group’s operations is not material, sensitivity analysis is
hence not presented.
35.3.2 Interest rate risk
The Group’s exposure to a risk of change in their fair value due to changes in interest rates relates
primarily to the interest-bearing bank loans and borrowings and deposits placed with licensed
banks. The management considers interest rate risks on borrowings to be low as the level of
borrowings are relatively insignificant.
Group
Company
2014
2013
2014
2013
RM’000
RM’000
RM’000
RM’000
Fixed rate instruments
Financial asset
Deposits placed with licensed banks
181,492
242,463
5,862
-
Financial liabilities
Unsecured foreign currency loan
(22,029)
(12,306)
-
-
Unsecured bankers’ acceptances
-
(541)
-
-
Unsecured revolving credit
(15,000)
-
-
-
144,463
229,616
5,862
-
Floating rate instruments
Financial assets
Liquid investment with licensed
financial institutions
78,506
-
500
-
Corporate management accounts
47,522
45,267
497
1,706
126,028
45,267
997
1,706
As the Group does not fair value its fixed rate instruments, the Group is not exposed to fair value risk.
As cash flow risk arising from floating rate instruments is not material, sensitivity analysis is not
presented.
