41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (d) Interest rate risk (contd.) Sensitivity analysis for interest rate risk A sensitivity analysis had been performed to determine the sensitivity of the Group’s profit net of tax to a reasonably possible change in the interest rate at the reporting date. This analysis assumes that all other variables, in particular foreign currency rate, remain constant. Based on the analysis, there is no material impact to the Group’s profit net of tax. The following tables set out the carrying amounts, the weighted average effective interest rates (“”WAEIR””) as at the reporting date and the remaining maturities of the Group’s and of the Company’s financial instruments that are exposed to interest rate risk: At 31 December 2022 Note WAEIR % Within 1 year RM’000 1-2 years RM’000 2-5 years RM’000 > 5 years RM’000 Total RM’000 Group Fixed rate Deposits with licensed banks and other financial institutions 27 2.16 131,244 – – – 131,244 IMTNs 35 4.25 – – (250,000) – (250,000) Lease liabilities 15 2.54 (12,744) (12,136) (16,074) – (40,954) Floating rate Revolving credit 35 2.61 (101,732) – – – (101,732) Term loans 35 4.69 (25,379) (26,563) (55,076) – (107,018) Company Fixed rate Deposits with licensed banks and other financial institutions 27 3.27 9,000 – – – 9,000 IMTNs 35 4.25 – – (250,000) – (250,000) Lease liabilities 15 4.00 (9,700) (6,934) (13,967) – (30,601) Floating rate Revolving credit 35 2.45 (52,000) – – – (52,000) 41. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTD.) (d) Interest rate risk (contd.) The following tables set out the carrying amounts, the weighted average effective interest rates (“”WAEIR””) as at the reporting date and the remaining maturities of the Group’s and of the Company’s financial instruments that are exposed to interest rate risk: (contd.) At 31 December 2021 Note WAEIR % Within 1 year RM’000 1-2 years RM’000 2-5 years RM’000 > 5 years RM’000 Total RM’000 Group Fixed rate Deposits with licensed banks and other financial institutions 27 1.61 201,742 – – – 201,742 IMTNs 35 4.85 (252,184) – – – (252,184) Lease liabilities 15 3.55 (8,599) (8,827) (16,193) – (33,619) Floating rate Revolving credit 35 1.90 (119,948) – – – (119,948) Term loans 35 3.83 (13,294) (11,238) (34,698) (12,159) (71,389) Company Fixed rate IMTNs 35 4.85 (252,184) – – – (252,184) Lease liabilities 15 3.73 (6,818) (7,052) (15,525) – (29,395) Floating rate Revolving credit 35 2.45 (52,000) – – – (52,000) Interest on financial instruments subject to floating interest rates is contractually repriced at intervals of less than 12 months. Interest on financial instruments at fixed rates are fixed until the maturity of the instruments. The other financial instruments of the Group and of the Company that are not included in the above tables are not subject to interest rate risks. (e) Market price risk Market price risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes in market prices (other than interest or exchange rates). The Group is not exposed to equity price risk arising from its investment in quoted equity instruments. p.362 p.363 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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