'-" FINANCIAL#RISK#MANAGEMENT#OBJECTIVES#AND#POLICIES#(CONT’D")# (c) Interest!rate!risk Interest!rate!risk!is!the!risk!that!the!fair!value!of!future!cash!flows!of!a!financial!instrument!will!fluctuate!because!of!changes!in! market!interest!rates'!The!Group’s!primary!interest!rate!risk!relates!to!interest-bearing!borrowings' The!investments!in!financial!assets!including!fixed!deposits!are!mainly!short-term!in!nature!and!they!are!not!held!for!speculative! purposes' The!Group!manages!its!interest!rate!exposure!by!using!a!mix!of!fixed!and!floating!rate!debts!and!actively!reviewing!its!debt! portfolio&!taking!into!account!the!investment!holding!period!and!nature!of!its!assets' Interest!rate!sensitivity The!following!table!demonstrates!the!sensitivity!to!a!reasonable!possible!change!in!interest!rates&!with!all!other!variables!held!constant&! of!the!Group’s!and!of!the!Company’s!(loss).profit!before!tax!(through!the!impact!on!floating!rate!borrowings)'!! +"+$ +"++ RM’""" RM’""" Group Borrowings!denominated!in!Ringgit!Malaysia !Interest!rates!increase!by!"/!basis!point Loss!before!tax!will!be!higher!by !(%,('! !-&/##! !Interest!rates!decrease!by!"/!basis!point Loss!before!tax!will!be!lower!by !((%,(') !(-&/##) Company Borrowings!denominated!in!Ringgit!Malaysia Interest!rates!increase!by!"/!basis!point Profit.(loss)!before!tax!will!be!(lower).higher!by !(+%',,)! !1&+,,! Interest!rates!decrease!by!"/!basis!point Profit.(loss)!before!tax!will!be!higher.(lower)!by !+%',,! !(1&+,,) (d) Foreign!currency!risk Foreign!currency!risk!is!the!risk!that!the!fair!value!or!future!cash!flows!of!a!financial!instrument!will!fluctuate!because!of!changes! in!foreign!exchange!rates' The!Group!has!transactional!currency!exposures!arising!from!balances!in!other!payables!in!a!currency!other!than!the!functional! currencies!of!the!Group'!The!foreign!currencies!in!which!these!transactions!are!denominated!in!are!US!Dollar&!Singapore!Dollar!and! Renminbi' The!Group’s!foreign!currency!risk!management!objective!is!to!minimise!foreign!currency!exposure!that!gives!rise!to!economic! impact&!both!at!transaction!and!reporting!period!translation!levels'!The!Group!and!the!Company!are!not!exposed!to!significant! foreign!currency!risk!as!the!majority!of!the!Group’s!and!of!the!Company’s!transactions&!assets!and!liabilities!are!denominated!in!the! functional!currencies!of!the!respective!entities!within!the!Group' NOTES TO THE FINANCIAL STATEMENTS FOR!THE!FINANCIAL!YEAR!ENDED!'$!DECEMBER!"%"' 292 ANNUAL REPORT 2023
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