Integrated Annual Report 2024 SECTION 6 • FINANCIAL STATEMENTS 315 Notes to the Financial Statements 28. FINANCIAL INSTRUMENTS (CONT’D) 28.6 Market risk (cont’d) 28.6.1 Currency risk (cont’d) Currency risk sensitivity analysis (cont’d) Equity Group Company 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 USD against RM 49,296 74,278 38,581 58,406 Profit of loss Group Company 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 USD, RMB, AUD and EUR against RM - USD (74,140) (69,631) 6,392 2,699 - RMB (8,258) (13,078) - - - AUD (3,078) (8,862) - - - EUR (14,873) (14,285) - - (100,349) (105,856) 6,392 2,699 A 10% (2023: 10%) weakening of RM against the above currencies at the end of the reporting period would have had equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remained constant. 28.6.2 Interest rate risk The Group’s fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates. Investments in equity securities and short-term receivables and payables are not significantly exposed to interest rate risk. Risk management objectives, policies and processes for managing the risk Interest rate exposure arising from the Group’s borrowings is managed through the use of fixed and floating rate debts. The Group will consider entering into derivative financial instruments where necessary to achieve an appropriate mix of fixed and floating rate exposure within the Group’s policy. The Group and the Company are also exposed to the ongoing Secured Overnight Financing Rate (“SOFR”) on its financial instruments. The SOFR is a benchmark interest rate for dollar-denominated derivatives and loans that replaced the London Interbank Offered Rate (“LIBOR”).
RkJQdWJsaXNoZXIy NDgzMzc=