138 GHL SYSTEMS BERHAD 199401007361 (293040-D) ANNUAL REPORT 2022 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2022 CONT’D 25. BORROWINGS (Cont’d) (e) The fair values of the Group’s and of the Company’s borrowings are estimated by discounting expected future cash flows at current market interest rates available for similar financial instruments and of the same remaining maturities. Borrowings that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value, are as follows: 2022 2021 Carrying amount Fair value Carrying amount Fair value RM RM RM RM Group 16,780,506 16,780,506 52,389,494 52,389,494 Company 5,842,938 5,842,938 37,417,392 37,417,392 The fair values of borrowings are categorised into Level 2 of the fair value hierarchy. There were no transfers between Level 1 and Level 2 fair value measurement during the financial year. (f) The weighted average effective interest rates per annum of borrowings as at the end of each reporting period are as follows: Group Company 2022 2021 2022 2021 % % % % Term loans 4.78 5.20 4.35 3.35 Banker acceptance 3.15 - - - Revolving loans 3.59 3.11 3.59 3.11 Islamic facility - 2.82 - - (g) At the end of the reporting period, the interest rate profile of the borrowings are as follows: Group Company 2022 2021 2022 2021 RM RM RM RM Floating rates 16,780,506 52,389,494 5,842,938 37,417,392 The following table demonstrates the sensitivity analysis of the Group and of the Company if interest rates at the end of each reporting period changed by hundred (100) basis points with all other variables held constant: Group Company 2022 2021 2022 2021 RM RM RM RM Effects of profit after taxation 100 basis point higher 127,532 398,160 44,406 284,372 100 basis point lower (127,532) (398,160) (44,406) (284,372)
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