NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2022 (cont’d) 46. FINANCIAL INSTRUMENTS (CONT’D) (b) Financial risk management objectives and policies (cont’d) (iii) Market risk (cont’d) (b) Interest rate risk (cont’d) The Group and the Company manage their interest rate risk exposure from interest bearing borrowing by obtaining financing with the most favourable interest rates in the market. The Group and the Company constantly monitor their interest rate risk by reviewing their debts portfolio to ensure favourable rates are obtained. The Group and the Company do not utilise interest swap contracts or other derivative instruments for trading or speculative purposes. Interest rate risk sensitivity analysis The interest rate profit of the Group’s and of the Company’s significant interest-bearing financial instruments, based on carrying amounts as at the end of the reporting period was: 2022 2021 RM’000 RM’000 Group Fixed rate instruments Financial assets Fixed deposits with licensed banks 20,127 16,165 Financing receivables 288,926 319,277 Financial liabilities Revolving credit (121,700) (41,700) Block discounting (22,858) (12,540) Lease liabilities (37,909) (5,536) Sukuk wakalah (150,000) - (23,414) 275,666 Floating rate instruments Financial liability Term loans (148,500) (106,307) (148,500) (106,307) 240
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