28. CAPITAL AND FINANCIAL RISK MANAGEMENT (continued) (b) Financial risk management (continued) iii) Interest rate risk (continued) The Group’s and the Company’s exposure to interest rate risk and the relating interest rate profiles are as follows: (a) Amounts due from subsidiaries, as disclosed in Note 15(d) 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 The Directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement. Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 Bank guarantees obtained by the Group to the Ministry of Education 541 181 - - In respect of corporate guarantees issued for subsidiaries - - 8,037 12,160 As part of the agreements with the Ministry of Education, the Group has issued performance bond in the form of bank guarantees to the Ministry of Education for the supply of textbooks and applied learning products. 30. RELATED PARTIES For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control or jointly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control. Related parties may be individuals or other entities. Related parties also include key management personnel defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel of the Group refer to the Directors of the Group. ANNUAL REPORT 2023 SASBADI HOLDINGS BERHAD 136 Financial Statements (continued)
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