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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
159
36. Financial risk management objectives and policies (cont’d.)
(b) Market risk: Interest rate risk (cont’d.)
Interest rate risk exposure
The following table analyses the Group and the Company’s interest rate risk exposure. The unquoted bonds, commercial papers and deposits with licensed
financial institutions are categorised by maturity dates.
Maturity
Effective
interest
rate
Less than
one year
One to
five years
More than
five years
Total
RM’000
RM’000
RM’000
RM’000
%
Group
At 31 December 2014
Investment securities
14,908
75,055
21,771
111,734
4.58
Deposits with licensed financial institutions:
Cash set aside by the Group for Clearing Funds
90,000
-
-
90,000
3.88
Cash and bank balances
210,299
-
-
210,299
3.77
At 31 December 2013
Investment securities
25,511
67,358
23,225
116,094
4.31
Deposits with licensed financial institutions:
Cash set aside by the Group for Clearing Funds
30,000
-
-
30,000
3.35
Cash and bank balances
349,067
-
-
349,067
3.36
Company
At 31 December 2014
Investment securities
4,920
10,222
16,786
31,928
5.08
Deposits with licensed financial institutions:
Cash and bank balances
56,030
-
-
56,030
3.84
At 31 December 2013
Investment securities
10,596
12,391
13,281
36,268
4.34
Deposits with licensed financial institutions:
Cash and bank balances
144,397
-
-
144,397
3.40
(c) Market risk: Foreign currency risk
Foreign currency risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates.The Group and the Company are
exposed to foreign currency risk primarily through the holding of CME Group shares which are denominated in United States Dollar (USD) and transactions in USD.