272 REDISCOVER | REBUILD | SUSTAIN Notes to the financial statements - 31 December 2015 35. Financial risk management objectives and policies (cont’d.) (c) Liquidity risk (cont’d.) Group Hedging activities The Group entered into interest rate swaps to hedge the cash flow risk of floating interest rate on the term loans. The notional amount swapped as at 31 December 2015 was RM1,513,692,000 (2014: RM Nil). The swaps are settled quarterly, consistent with the interest payment schedule of the loan. The following table indicates the periods in which the cash flows are expected to occur for cash flow hedges as at 31 December 2015: More More More More than than than than 1 year 2 years 3 years 4 years Contractual and and and and More Carrying cash Within within within within within than amount flows 1 year 2 years 3 years 4 years 5 years 5 years RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 31 December 2015 Net cash outflows (955) (43,493) (12,083) (12,050) (9,505) (2,943) (2,951) (3,961) The Group’s hedging activities on the interest rate swaps are tested to be effective. During the year, the Group recognised in other comprehensive income a gain of RM1,064,000 (2014: loss of RM3,476,000) on the interest rate swaps of its subsidiaries. The Group had, in previous year terminated some of its interest rate swap arrangements following early settlement of certain loans prior to maturity. As a result, the cumulative loss on the interest rate swap of RM4,208,000 has been reclassified from equity into the income statement. The Group’s share of its joint ventures’ unrealised gain on interest rate swap during the year was RM5,969,000 (2014: RM24,149,000).
RkJQdWJsaXNoZXIy NDgzMzc=