MISC BERHAD - Annual Report 2014 p 288 35. Financial risk management objectives and policies (cont’d.) (a) Interest rate risk (cont’d.) As at 31 December 2014, the Group and the Corporation’s exposure to the risk of changes in market interest rate relates primarily to the Group and the Corporation’s placement of deposits with licensed banks, cash and bank balances, loans to subsidiaries and joint ventures, interest bearing loans and borrowings and loans from subsidiaries and joint ventures. The interest rate profiles of the Group and of the Corporation’s interest-bearing financial instruments based on carrying amount, as at reporting date were as follows: Group Corporation 2014 2013 2014 2013 RM’000 RM’000 RM’000 RM’000 Fixed rate instruments Financial assets Deposits with licensed banks 1,228,873 2,047,568 219,969 64,243 Deposits with IFSSC 3,258,864 2,414,069 2,349,268 2,039,763 Loans to: Subsidiaries – – 936,155 873,632 Joint ventures 48,240 48,203 48,240 48,203 Financial liabilities Fixed rate borrowings 562,796 4,362,958 – 1,300,000 Floating rate borrowings (swapped to fixed rate)# – 183,431 – – Floating rate instruments Financial assets Cash and bank balances 351,092 286,098 12,037 3,339 Loans to: Subsidiaries – – 2,795,600 2,717,125 Joint ventures 275,998 248,971 275,998 248,971 Financial liabilities Floating rate borrowings 8,176,367 5,672,440 – 1,645,000 Loans from subsidiaries – – 4,146,669 2,436,954 # The Group had terminated its interest rate swap (“IRS”) arrangements on its borrowing as disclosed in Note 18(b). NOTESTOTHE FINANCIAL STATEMENTS - 31 December 2014
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