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16. Derivative Financial Instruments (cont’d.)
The above foreign currency forward contracts were entered into by the Group to minimise its exposure to foreign currency risks
as a result of transactions denominated in currencies other than its functional currency, arising from the normal business
activities. These contracts are not designated as cash flow or fair value hedges, and are entered into for periods consistent with
currency transaction exposure and fair value changes exposure. Such derivatives do not qualify for hedge accounting. Foreign
currency forward contracts are used to hedge certain payables denominated in USD for which firm commitments existed at the
reporting date, extending to January 2014.
During the financial year, the Group recognised a gain of RM811,000 (2012: a loss of RM151,000) arising from fair value
changes of derivative financial instruments. The fair value changes are attributable to changes in foreign exchange spot and
forward rates respectively. The method and assumptions applied in determining the fair values of derivatives are disclosed in
Note 28(f)(iv).
17. Cash and Cash Equivalents
Group
Company
2013
2012
2013
2012
RM’000
RM’000
RM’000
RM’000
Cash and bank balances
182,971
131,663
923
2,157
Deposits with licensed banks
228,108
577,193
–
–
411,079
708,856
923
2,157
Cash and cash equivalents include cash in hand and at bank and deposits with licensed banks. For the purpose of the
statement of cash flows, cash and cash equivalents are net of outstanding bank overdrafts, if any.
The Group’s cash and cash equivalents included amounts of foreign currency denominated in USD totalling RM8.3 million
(2012: RM43.4 million) at the reporting date.
Cash at banks earn interest at floating rates based on daily bank deposit rates. The weighted average effective interest rates of
deposits at the reporting date are as follows:
Group
2013
2012
%
%
Deposits with licensed banks
3.3
3.2
The deposits of the Group placed with licensed banks will mature within one month (2012: one month) from the end of the
reporting date.
NOTES TO THE FINANCIAL STATEMENTS
31 December 2013
DiGi.COM BERHAD (425190-X)
ANNUAL REPORT 2013
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