EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 111 notes to the financial statements 31 december 2019 (cont’d) 35. Financial Instruments (Cont’d) (b) Financial risk management objectives and policies (Cont’d) (iii) Market risks (Cont’d) (a) Interest rate risk (Cont’d) The interest rate profile of the Group’s and of the Company’s significant interest-bearing financial instruments, based on carrying amount as at the end of the reporting period was: 2019 2018 RM RM Group Floating rate instrument Financial assets 19,801,575 26,149,369 Fixed rate instrument Financial assets 211,019 212,097 Company Floating rate instrument Financial assets 19,801,575 26,149,369 Fixed rate instrument Financial assets 961,488 1,385,145 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 flow 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 RM198,016 and RM198,016 (2018: RM261,494 and RM261,494) respectively, arising mainly as a result of higher/lower interest expenses on floating rate instruments. This analysis assumes that all other variables remain constant. The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.