Notes To The Financial Statements (Cont’d) 31 March 2026 ANNUAL REPORT 2026 ENRA GROUP BERHAD 171 Registration No: 93 199201005296 (236800 - T 29. INSURANCE AND FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (ii) Credit risk (continued) Other than the amounts owing by the subsidiaries amounting to RM33,371,000 (2025: RM37,281,000), which represent 99% (2025: 99%) of total receivables of the Company, there is no significant concentration of credit risk of the Company. Exposure to credit risk The Company’s maximum exposure to credit risk in relation to financial guarantee contract provided as credit enhancement is represented by the outstanding credit facility of the subsidiary as at the end of the reporting period, which amounted to RM6,159,000 (2025: RM9,930,000). Other than financial guarantee contract, the Group’s and the Company’s maximum exposure to credit risk is represented by the carrying amount of each class of financial assets, including contract assets recognised in the statements of financial position at the end of the reporting period. Information regarding credit enhancements for trade other receivables is disclosed in Note 8 to the financial statements. (iii) 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, 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 Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial instruments at fair value through profit or loss. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss. Cash flow sensitivity analysis for floating rate instruments 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 2026 2025 2026 2025 RM’000 RM’000 RM’000 RM’000 Effect to profit/(loss) after tax and equity: Increased by 0.1% (2025: 0.1%) (21) (13) (10) (4) Decreased by 0.1% (2025: 0.1%) 21 13 10 4
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