Events 2005 - ChartNexus

Notes to the Financial Statements 31 December 2005
38. FINANCIAL INSTRUMENTS (continued)
(c) Interest rate swaps
The Company uses interest rate swaps to manage its exposure to changes in the fair value of its Medium Term Notes by
swapping a proportion of those notes from fixed rates to floating rates. The interest rate swaps contracts entered into are
as follows:
(i) Contracts with nominal values of RM100 million have fixed interest receipts at a rate of 5.5% for period up until 28
August 2007 and have floating interest rate payments at 2.2% plus 6-Month KLIBOR respectively.
(ii) Contracts with nominal values of RM100 million have fixed interest receipts at a rate of 5.7% for period up until 28
August 2007 and have floating interest rate payments at 2.34% plus 6-Month KLIBOR respectively.
(d) Credit risk
The Group and the Company has no significant concentrations of credit risk except that the majority of its deposits are
placed with major financial institutions in Malaysia.
(e) Fair values
The carrying amounts of financial assets and liabilities of the Group and Company as at balance sheet date approximate
their fair values except as set out below:
Group Company
As at 31 December Carrying Fair Carrying Fair
2005 amount value amount value
RM’000 RM’000 RM’000 RM’000
Recognised
Investment in bonds 20,857 22,872 20,857 22,872
Amount owing by subsidiary companies – – 29,054 *
Medium Term Notes (250,000) (247,110) (250,000) (247,110)
Amount owing to subsidiary companies – – (9,854) *
Unrecognised
Forward foreign exchange contract – 1,854 – 1,854
Interest rate swap contracts – (783) – (783)
STAR PUBLICATIONS
(MALAYSIA) BERHAD
159