Fraser & Neave Holdings Bhd Annual Report 2019

A N N U A L R E P O R T 2 0 1 9 06 Financial Statements 201 NOTES TO THE FINANCIAL STATEMENTS 29. FINANCIAL INSTRUMENTS (CONTINUED) (E) LIQUIDITY RISK (CONTINUED) Maturity analysis (continued) 2018 Note Carrying amount RM’000 Contractual interest rate % Contractual cash flows RM’000 Within 1 year RM’000 2-3 years RM’000 Group (restated) Interest-bearing borrowings 16 335,524 1.83 to 4.24 347,043 227,220 119,823 Financial guarantees – – 9,950 9,950 – Trade and other payables 29(A) 579,111 – 579,111 579,111 – Derivative financial liabilities 13 140 – 140 140 – 914,775 936,244 816,421 119,823 Company Financial guarantees – – 347,043 347,043 – Other payables 19 858 – 858 858 – 858 347,901 347,901 – (F) MARKET RISK Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and other prices that will affect the Group’s financial position or cash flows. (i) Currency risk The Group is exposed to foreign currency risk on cash and cash equivalents, sales and purchases that are denominated in a currency other than the respective functional currencies of Group entities. The currencies giving rise to this risk are primarily United States Dollar (“USD”) and Singapore Dollar (“SGD”). Risk management objectives, policies and processes for managing the risk The Group hedges a portion of its foreign currency denominated trade payables. The Group uses forward exchange contracts to hedge its foreign currency risk. Most of the forward exchange contracts have maturities of less than one year after the end of the reporting period. Where necessary, the forward exchange contracts are rolled over at maturity.