NOTES TO THE FINANCIAL STATEMENTS Cont’d 29. Financial instruments cont’d 29.6 Market risk cont’d 29.6.2 Interest rate risk cont’d Exposure to interest rate risk The interest rate profile of the Group’s and the Company’s significant interest-bearing financial instruments, based on carrying amounts as at the end of the reporting period was: Group Company 2022 2021 2022 2021 RM’000 RM’000 RM’000 RM’000 Fixed rate instruments Financial assets 141,515 31,317 78,333 2,316,193 Financial liabilities (2,539,143) (2,514,000) (2,300,000) (2,300,000) (2,397,628) (2,482,683) (2,221,667) 16,193 Floating rate instruments Financial liabilities (2,554,170) (3,856,207) (1,097,712) (1,470,815) Interest rate risk sensitivity analysis Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group does not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments A change of 30 basis points (“bp”) in interest rates at the end of the reporting period would have increased/(decreased) post-tax profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remained constant. Profit or loss 2022 2021 30 bp increase 30 bp decrease 30 bp increase 30 bp decrease RM’000 RM’000 RM’000 RM’000 Group Floating rate instruments (5,824) 5,824 (8,792) 8,792 Company Floating rate instruments (2,503) 2,503 (3,353) 3,353 ANNUAL REPORT 2022 296
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