Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 127 32. Financial risk management policies (continued) (c) Market risk (continued) Interest and profit rates risk The Group’s fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest or profit rates. For the Islamic and conventional facilities respectively, the Group’s variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest or profit rates. The Group is also exposed to interest or profit rate risk on the term deposits placed with licensed banks. Investment in equity securities and short term receivables and payables are not significantly exposed to interest or profit rate risk. Risk management objectives, policies and processes for managing the risk The Group monitors its exposure to changes in interest or profit rates on a regular basis. Borrowings are negotiated with a view to secure the best possible terms including rates of interest and profit rate, to the Group. Exposure to interest and profit rates risk The interest and profit rates 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 are as follows: 30.6.2021 31.12.2019 RM’000 RM’000 Group Fixed rates instruments Financial assets 143,317 107,408 Financial liabilities (1,751,219) (2,099,335) (1,607,902) (1,991,927) Floating rate instruments Financial liabilities (2,188,735) (1,323,063) Company Fixed rates instruments Financial liabilities (100,000) (868,825) Floating rate instruments Financial liabilities (1,053,822) -