Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 128 32. Financial risk management policies (continued) (c) Market risk (continued) Interest and profit rates risk sensitivity analysis Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial liabilities at ‘fair value through profit or loss’ and does not designate derivatives as hedging instrument under fair value hedge accounting method. Therefore, a change in interest rate at the end of the reporting period would not affect profit or loss. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points (“bp”) in interest and profit 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 100 bp increase 100 bp decrease RM’000 RM’000 Group Floating rate instruments - Financial period as at 30 June 2021 16,634 (16,634) - Financial year as at 31 December 2019 10,055 (10,055) Company Floating rate instruments - Financial period as at 30 June 2021 8,009 (8,009) Other price risk Equity price risk arises from the Group or the Company’s investments in equity securities. Risk management objectives, policies and processes for managing the risk Management monitors the equity investments on a portfolio basis. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by management. There is no sensitivity analysis performed as any change will be insignificant to the Group.