Events 2005 - ChartNexus

156
Notes to the Financial Statements 31 December 2005
38. FINANCIAL INSTRUMENTS (Continued)
(a) Interest rate risk (Continued)
Effective Not later
Later than
1 year
and not
interest than later than
2004 rate 1 year 5 years Total
Group % RM’000 RM’000 RM’000
Financial assets
Investment in bonds 7.0 – 20,714 20,714
Short term deposits 2.9 225,658 – 225,658
Financial liabilities
Redeemable unsecured bonds 4.0 (250,000) – (250,000)
Bank overdraft 6.5 (320) – (320)
Company
Financial assets
Investment in bonds 7.0 – 20,714 20,714
Short term deposits 2.9 209,068 – 209,068
Financial liability
Redeemable unsecured bonds 4.0 (250,000) – (250,000)
(b) Foreign currency risk
Foreign currency forward contracts are entered into by the Company in currencies other than their functional currency to
manage exposure to fluctuations in foreign currency exchange rates on specific transactions. The Group’s policy is to enter
into foreign currency forward contracts for up to 100% of such foreign currency receipts and payments anticipated each
month over the following year.