205 ANNUAL REPORT 2024 MST GOLF GROUP BERHAD 33. FINANCIAL INSTRUMENTS (CONT’D) 33.2 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 2024 2023 2024 2023 RM ‘000 RM ‘000 RM ‘000 RM ‘ Fixed rate instruments Financial assets Fixed deposits with licensed banks 23,745 57,374 19,701 34,326 Other investment 27,804 26,655 26,371 26,655 Amount owing by subsidiaries - - 46,096 44,872 Financial liability Lease liabilities (63,584) (59,779) - - (12,035) 24,250 92,168 105,853 Floating rate instruments Financial liabilities Borrowings - term loans 17,567 20,314 - - - bankers’ acceptance 16,418 16,935 - - - supplier finance arrangements 4,494 6,916 - - - bank overdraft 6,329 11,027 - - - revolving loan - 3,479 - - 44,808 58,671 - - 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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