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Frontken Corporation Berhad (651020-T)
ANNUAL REPORT
2016
24. TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES (CONT’D)
(c) Defined benefit plan – Indonesia (Cont’d)
The Group
2016
2015
(Decrease)/
(Decrease)/
Increase
Increase
Effect on defined benefit obligations
Discount rate (per annum)
- strengthened by 1%
(39,066)
(33,680)
- weakened by 1%
45,434
38,868
Expected rate of salary increases (per annum)
- strengthened by 1%
48,511
36,512
- weakened by 1%
(42,313)
(41,646)
25. BANK BORROWINGS
The Group
The Company
2016
2015
2016
2015
RM
RM
RM
RM
Short-term borrowings
- Money market security
4,652,400
11,535,280
-
-
Term loans - current portion (Note 22)
3,813,871
4,642,193
2,090,734
1,933,367
8,466,271
16,177,473
2,090,734
1,933,367
The short-term borrowings represent money market loan facility obtained by a subsidiary incorporated in Singapore
which are rolled over every month. The money market loan facility bear effective interest rates ranging from 2.39% to
3.33% (2015: 2.36% to 3.33%) per annum.
The security for the bank borrowings are disclosed in Note 22 to the financial statements.
26. FINANCIAL INSTRUMENTS
The Group’s activities are exposed to a variety of market risk (including foreign currency risk, interest rate risk and
equity price risk), credit risk and liquidity risk. The Group’s overall financial risk management policy focuses on the
unpredictability of financial markets and seeks tominimise potential adverse effects on theGroup’s financial performance.
(a) Financial Risk Management Policies
The Group’s policies in respect of the major areas of treasury activity are as follows:-
(i)
Foreign currency risk
The Group is exposed to foreign currency risk on transactions and balances that are denominated in currencies
other than the respective functional currencies of entities within the Group. The currencies giving rise to this
risk are primarily United States Dollar, Singapore Dollar, New Taiwan Dollar and Indonesian Rupiah. Foreign
currency risk is monitored closely on an ongoing basis to ensure that the net exposure is at an acceptable
level.
Notes To The Financial Statements
(cont’d)