28. CAPITAL AND FINANCIAL RISK MANAGEMENT (continued) (b) Financial risk management (continued) iii) Interest rate risk (continued) The Group9s and the Company9s exposure to interest rate risk and the relating interest rate profiles are as follows: (a) Amounts due from subsidiaries, as disclosed in Note 15(e) to the financial statements; (b) Lease liabilities, as disclosed in Note 11(g) to the financial statements; (c) Cash and cash equivalents, as disclosed in Note 16(d) to the financial statements; (d) Loans and borrowings, as disclosed in Note 18(g) to the financial statements; and (e) Amount due to a subsidiary, as disclosed in Note 19(d) to the financial statements. The Group adopts a practice to continuously seek for alternative banking facilities which provide competitive interest rates to finance and/or refinance its working capital requirements. 29. GUARANTEES Group Company 2024 2023 2024 2023 RM9000 RM9000 RM9000 RM9000 Bank guarantees obtained by the Group to the Ministry of Education 746 541 - - In respect of corporate guarantees issued for subsidiaries - - 5,822 8,037 The Group and the Company have effected guarantees given to third parties in respect of trade and contracts and to financial institutions for credit facilities granted to its customers and subsidiaries. Effective 1 January 2023, MFRS 17 established the principles for recognition, measurement, presentation and disclosure of insurance contracts and supersedes MFRS 4 Insurance Contracts. The Group and the Company do not have any contracts that met the definition of an insurance contract under MFRS 17, except for corporate guarantee provided to subsidiaries and bank guarantees provided to customers, which were financial guarantee contracts that the Group and the Company had previously explicitly asserted under MFRS 4. The Group and the Company made an irrevocable choice to apply MFRS 9 Financial Instruments on a contract-by-contract basis to these financial guarantee contracts as at the date of transition to MFRS 17. The Directors are of the view that the chances of the third parties and financial institutions to call upon the guarantees are remote. The resulting loss allowance is not material and hence, it is not provided for. Responsible Corpor-|; bঞ;mv_br Integrity & Honesty Accountable P-u|m;uv_br Excellence & Inno-ঞom Financial Statements (continued) 143
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