MSM Malaysia Holdings Berhad Annual Report 2020

4 FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Financial risk management policies (continued) Market risk (continued) (iii) Finance rate risk The Group’s finance rate risk mainly arises from term loans. Term loans issued at variable rates expose the Group to cash flow finance rate risk. The finance rate profile of the Group’s finance bearing financial assets, based on carrying amounts as at the end of the financial year was: Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Financial assets At fixed rate: Fixed deposits 127,748 143,652 16,688 29,282 At floating rate (exposed to cash flow finance rate risk): Loans to subsidiaries - - 1,002,053 1,059,698 127,748 143,652 1,018,741 1,088,980 The finance rate profile of the Group’s finance bearing financial liabilities, based on carrying amounts as at the end of the reporting period was: Group Company 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Financial liabilities At fixed rate: Loan due to a related company 47,152 70,431 10,108 37,116 Borrowings 354,550 341,156 - - 401,702 411,587 10,108 37,116 At floating rate (exposed to cash flow finance rate risk): Borrowings 552,550 703,628 552,550 703,628 Loan due to a subsidiary - - 128,856 94,758 552,550 703,628 681,406 798,386 954,252 1,115,215 691,514 835,502 MSM MALAYSIA HOLDINGS BERHAD Annual Repor t 2020 166 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 CHAIRMAN’S STATEMENT DELIVERING VALUE MSM OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS GROUP FINANCIAL REPORT