PRG Holdings Berhad Annual Report 2020

39. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (ii) Interest rate risk (continued) 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 2020 2019 2020 2019 RM’000 RM’000 RM’000 RM’000 Loss Loss Loss Profit after tax after tax after tax after tax Increase by 0.5% (2019: 0.5%) (14) 71 (171) (178) Decrease by 0.5% (2019: 0.5%) 14 (71) 171 178 The assumed movement in basis points for interest rate sensitivity analysis is based on current observable market environment. (iii) Liquidity and cash flow risks The Group actively manages its debt maturity profile, operating cash flows and the availability of funding so as to ensure that all operating, investing and financing needs are met. In liquidity risk management strategy, the Group measures and forecasts its cash commitments and maintains a level of cash and cash equivalents deemed adequate to finance the Group’s activities. Analysis of financial instruments by remaining contractual maturities The table below summarises the maturity profile of the Group’s and of the Company’s liabilities at the end of the reporting period based on contractual undiscounted repayment obligations. On demand or within One to five Over five one year years years Total RM’000 RM’000 RM’000 RM’000 Group As at 31 December 2020 Financial liabilities Trade and other payables 99,368 13,345 - 112,713 Borrowings 5,713 44,049 24,108 73,870 Total undiscounted financial liabilities 105,081 57,394 24,108 186,583 Annual Report 2020 185 Notes to the Financial Statements 31 December 2020 cont’d