ENRA Group Berhad | Annual Report 2022 160 NOTES TO THE FINANCIAL STATEMENTS 31 MARCH 2022 37. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d) (i) Credit risk (Cont’d) At the end of the reporting period, the Group does not have any significant exposure to any individual customer or counterparty other than 98% (2021: 74%) of the Group’s trade receivables as at reporting date were due from two (2) (2021: three (3)) major customers. The Group does not anticipate the carrying amount recorded at the reporting period to be significantly different from the values that would eventually be received. Other than the amounts owing by the subsidiaries amounting to RM78,087,000 (2021: RM61,757,000), which represent 98% (2021: 98%) of trade and other receivables of the Company, there is no significant concentration of credit risk of the Company. Exposure to credit risk At the end of the reporting period, the Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statements of financial position. Information regarding credit enhancements for trade and other receivables is disclosed in Note 11 to the financial statements. (ii) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the financial instruments of the Group and of the Company would fluctuate because of changes in market interest rates. The Group’s and the Company’s exposure to interest rate risk arises primarily from their fixed deposits with licensed banks, short term funds, borrowings and amounts due from subsidiaries. The Group borrows at both, fixed and floating rates of interest to generate the desired interest profile and to manage the exposure of the Group and of the Company to interest rate fluctuations. Sensitivity analysis for interest rate risk The following table demonstrates the sensitivity analysis of the Group and of the Company if interest rates at the end of reporting period changed by 10 basis points with all other variables held constant: Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Profit/ (Loss)/ Profit/ (Loss)/ (Loss) Profit (Loss) Profit after tax after tax after tax after tax Increased by 0.1% (2021: 0.1%) 6 (10) 5 (7) Decreased by 0.1% (2021: 0.1%) (6) 10 (5) 7
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