PRG Holdings Berhad Annual Report 2019

ANNUAL REPORT 2019 185 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 37. 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): Company Average effective interest rate Total Within 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years More than 5 years Note % RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 At 31 December 2019 Fixed rate Amount owing by a subsidiary - RM 15(g)(i) 6.36 55,289 - - 55,289 - - - Term loan - HKD 23 6.00 (8,411) (8,411) - - - - - At 31 December 2018 Fixed rate Amount owing by a subsidiary - RM 15 6.36 52,621 - 52,621 - - - - Term loan - HKD 23 8.50 (15,060) (15,060) - - - - - 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 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 Loss after tax Loss after tax Loss after tax Profit after tax Increase by 0.5% (2018: 0.5%) 71 113 (178) 142 Decrease by 0.5% (2018: 0.5%) (71) (113) 178 (142) The assumed movement in basis points for interest rate sensitivity analysis is based on current observable market environment.