Press Metal Aluminium Holdings Berhad SECTION 6 • FINANCIAL STATEMENTS 316 Notes to the Financial Statements 28. FINANCIAL INSTRUMENTS (CONT’D) 28.6 Market risk (cont’d) 28.6.2 Interest rate risk (cont’d) Exposure to interest rate risk The interest rate profile of the Group’s and the Company’s significant interest-bearing financial instruments, based on carrying amounts as at the end of the reporting period was: Group Company 2024 RM’000 2023 RM’000 2024 RM’000 2023 RM’000 Fixed rate instruments Financial assets 7,063 171,097 - - Financial liabilities (2,463,877) (3,029,067) (2,250,000) (2,800,000) (2,456,814) (2,857,970) (2,250,000) (2,800,000) Floating rate instruments Financial liabilities (1,620,525) (1,598,786) (518,791) (839,567) Interest rate risk sensitivity analysis Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group does 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. Cash flow sensitivity analysis for variable rate instruments A change of 30 basis points (“bp”) in interest rates at the end of the reporting period would have increased/ (decreased) post-tax profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remained constant. Profit or loss 2024 2023 30 bp increase RM’000 30 bp decrease RM’000 30 bp increase RM’000 30 bp decrease RM’000 Group Floating rate instruments (3,695) 3,695 (3,645) 3,645 Company Floating rate instruments (1,183) 1,183 (1,914) 1,914
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