NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2025 (CONT’D) 37. FINANCIAL INSTRUMENTS (CONT’D) 37.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D) (a) Market Risk (Cont’d) (i) Foreign Currency Risk (Cont’d) Foreign Currency Risk Sensitivity Analysis (Cont’d) The Group (Cont’d) The Group 2025 2024 RM’000 RM’000 EUR/RM - strengthened by 5% (177) - - weakened by 5% 177 - The Group Any reasonably possible change in the foreign currency exchange rates at the end of the reporting period does not have a material impact on the profit after taxation of the Company and hence, no sensitivity analysis is presented. (ii) Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The exposure to interest rate risk arises mainly from long-term borrowings with variable rates. The Group adopt a policy by obtaining the most favourable interest rates available and by maintaining a balanced portfolio mix of fixed and floating rate borrowings. The fixed rate debt instruments of the Group are not subject to interest rate risk since neither carrying amounts nor the future cash flows will fluctuate because of a change in their market interest rates. The exposure to interest rate risk based on the carrying amounts of the financial instruments at the end of the reporting period is disclosed in Note 20 to the financial statements. 222 KEYFIELD INTERNATIONAL BERHAD (Incorporated in Malaysia) | Registration No: 202001038989 (1395310 - M)
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