PRG Holdings Berhad Annual Report 2018

33. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (ii) Interest rate risk (continued) The following tables set out the carrying amounts, the average effective interest rates as at the end of the reporting period and the remaining maturities of the Group’s and of the Company’s financial instruments that are exposed to interest rate risk (continued): Average effective More Company interest Within 1 - 2 2 - 3 3 - 4 4 - 5 than rate Total 1 year years years years years 5 years Note % RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 31 December 2018 Fixed rate Amount owing by a subsidiary 13 - RM 6.36 52,551 - 52,551 - - - - Term loan 20 - HKD 8.50 (15,060) (15,060) - - - - - At 31 December 2017 Fixed rate Amounts owing by subsidiaries 13 - RM 6.36 49,953 - 49,953 - - - - Sensitivity analysis for interest rate risk The following table demonstrates the sensitivity analysis of the Group and of the Company if interest rates at the end of reporting period changed by 50 basis points with all other variables held constant: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Loss Profit Profit Profit after tax after tax after tax after tax Increase by 0.5% (2017: 0.5%) (80) 31 142 189 Decrease by 0.5% (2017: 0.5%) 80 (31) (142) (189) The assumed movement in basis points for interest rate sensitivity analysis is based on current observable market environment. 2018 A N N U A L R E P O R T 160 notes to the financial statements 31 December 2018 (continued)