Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 144 22 DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) The details of the derivative financial instruments are set out as below: (continued) (a) CCIRSs (continued) Com- Contract/ mencement Notional date amount Exchange Rate Interest Rate RM’000 28 Feb 2011 167,300 The Group and Company pay RM The Group and Company pay KLIBOR in exchange for receiving SGD at a plus a spread in exchange for receiving predetermined exchange rate of Singapore Swap Offer Rate (“SOR”) plus RM2.39 to SGD1.00 for its principal a spread on the notional principal and interest in which at the end amount. of the tenure, principal is on bullet repayment basis. 14 Jun 2011 227,250 The Group and Company pay RM in The Group and Company pay a fixed exchange for receiving USD at a interest rate of 4.99% in exchange for predetermined exchange rate of receiving LIBOR plus a spread on the RM3.03 to USD1.00 for its principal notional principal amount. and interest in which at the end of the tenure, principal is on bullet repayment basis. (b) IRSs Com- Contract/ mencement Notional date amount Interest Rate RM’000 17 Jul 2012 200,000 The Group and Company pay a fixed interest rate of 3.50% per annum in exchange for receiving KLIBOR on the notional principal amount. 25 Jul 2012 500,000 The Group and Company pay a fixed interest rate of 3.43% per annum in exchange for receiving KLIBOR on the notional principal amount. At the reporting date, the Group and the Company have recognised derivative financial assets and derivative financial liabilities of RM28,196,000 (31.12.2011: RM3,201,000; 1.1.2011: RM Nil) and RM398,036,000 (31.12.2011: RM366,177,000; 1.1.2011: RM348,452,000) respectively, a net increase of RM6,864,000 (2011: RM14,524,000) from the prior financial year, on remeasuring the fair values of the derivative financial instruments. The corresponding increase has been included in equity in the cash flow hedging reserve. For the current financial year, RM109,833,000 was reclassified to the income statements to offset the net unrealised foreign exchange gain of RM109,230,000 which arose from the strengthening RM against USD offset by the weakening RM against SGD, and recognition of additional interest expense of RM603,000 as the underlying interest rates were lower than the hedged interest rates on the borrowings. This has resulted in a debit balance in the cash flow hedging reserve as at 31 December 2012 of RM105,680,000. For the financial year ended 31 December 2011, RM95,268,000 was reclassified to the income statements to offset the unrealised foreign exchange loss of RM95,641,000 which arose from the weakening RM and USD offset by the recognition of additional interest expense of RM373,000 as the underlying interest rates were lower than the hedged interest rates on the borrowings. This has resulted in a debit balance in the cash flow hedging reserve as at 31 December 2011 of RM208,649,000. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2012 Continued