NOTES TO THE FINANCIAL STATEMENTS For the Financial Year Ended 31 December 2023 (cont’d) 45. 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 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: (Cont’d) 2023 2022 RM’000 RM’000 Group (Cont’d) Floating rate instruments Financial liabilities Revolving credit (119,400) (121,700) Term loans (130,238) (148,500) (249,638) (270,200) Company Fixed rate instruments Financial asset Fixed deposits with licensed banks 11,369 11,143 Financial liabilities Sukuk wakalah (575,000) (150,000) Lease liabilities (316) (24) (563,947) (138,881) Floating rate instruments Financial liabilities Revolving credit (95,000) (100,000) Term loans (115,087) (148,500) (210,087) (248,500) Interest rate risk sensitivity analysis 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. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss. Cash flows sensitivity analysis for floating rate instruments A change in 1% interest rate at the end of the reporting period would have increased/ (decreased) the Group’s and the Company’s profit before tax by RM2,496,000 and RM2,100,000 (2022: RM2,702,000 and RM2,485,000), arising mainly as a result of lower/higher interest expense on floating rate borrowings. This analysis assumed that all other variables remain constant. The assumed movement in basis points for the interest rate sensitivity analysis based on the currently observable market environment. ANNUAL REPORT 2023 ANNUAL REPORT 2023 253 (iii) Market risk (b) Interest rate risk FINANCIAL STATEMENTS
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