38. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (ii) Interest rate risk (continued) Sensitivity analysis for interest rate risk Sensitivity analysis for fixed rate instruments as at the end of the reporting period is not presented as fixed rate instruments are not affected by change in interest rates. The following table demonstrates the sensitivity analysis of the floating rate instruments of the Group and of the Company if interest rates at the end of reporting period changed by 50 basis points with all other variables held constant: Group Company 2021 2020 2021 2020 RM’000 RM’000 RM’000 RM’000 Profit Loss Loss Loss after tax after tax after tax after tax Increase by 0.5% (2020: 0.5%) 218 (233) - - Decrease by 0.5% (2020: 0.5%) (218) 233 - - The assumed movement in basis points for interest rate sensitivity analysis is based on current observable market environment. (iii) Liquidity and cash flow risks The Group actively manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that all operating, investing and financing needs are met. In liquidity risk management strategy, the Group measures and forecasts its cash commitments and maintains a level of cash and cash equivalents deemed adequate to finance the Group’s activities. Analysis of financial instruments by remaining contractual maturities The table below summarises the maturity profile of the Group’s and of the Company’s liabilities at the end of the reporting period based on contractual undiscounted repayment obligations. On demand or within One to five Over five one year years years Total RM’000 RM’000 RM’000 RM’000 Group As at 31 December 2021 Financial liabilities Trade and other payables 94,526 49 - 94,575 Borrowings 11,461 30,777 26,155 68,393 Total undiscounted financial liabilities 105,987 30,826 26,155 162,968 NOTES TO THE FINANCIAL STATEMENTS 187 P R G H O L D I N G S B E R H A D A N N U A L R E P O R T 2 0 2 1 31 December 2021 (cont’d)
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