219 ANNUAL REPORT 2023 MST GOLF GROUP BERHAD Registration No: 199301009307 (264044-M) 81 31. FINANCIAL INSTRUMENTS (CONT’D) 31.2 Financial risk management objectives and policies (cont’d) Financial risk (cont’d) The main areas of financial risks faced by the Group and the Company and the policy in respect of the major areas of treasury activity are set out as follows (cont’d):- (c) Interest rate risk (cont’d) The interest rate profile of the Group’s and the Company’s significant interest-bearing financial instruments, based on carrying amounts as at end of the reporting period are:- Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Fixed rate instruments Financial asset Fixed deposits with licensed banks 57,374 2,059 34,326 - Other investment 26,655 - 26,655 - Amount owing by subsidiaries - - 44,872 9,851 Financial liability Lease liabilities (59,779) (49,410) - - 24,250 (47,351) 105,853 9,851 Floating rate instruments Financial liabilities Borrowings - term loans 20,314 18,393 - - - bankers’ acceptance 16,935 21,853 - - - bank overdraft 11,027 9,645 - - - invoice financing 803 2,240 - - -trust receipts 6,113 5,786 - - - revolving loan 3,479 3,274 - - 58,671 61,191 - - Fair value sensitivity analysis for fixed rate instruments The Group and the Company do not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group and the Company do not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss.
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