Annual Report 2016
127
28. Financial instruments (Cont’d)
28.6 Market risk (Cont’d)
28.6.2 Interest rate risk (Cont’d)
Exposure to interest rate risk
The interest rate 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 was:
Group Company
2016 2015 2016 2015
RM’000 RM’000 RM’000 RM’000
Fixed rate instruments
Financial assets 24,910 7,136 271,775 252,195
Financial liabilities (356,657) (416,896) (82,841) (115,000)
(331,747) (409,760) 188,934 137,195
Floating rate instruments
Financial assets 203,093 183,189 273,910 179,294
Financial liabilities (416,878) (340,095) (296,390) (275,489)
(213,785) (156,906) (22,480) (96,195)
Interest rate risk sensitivity analysis
(a) Fair value sensitivity analysis for fixed rate instruments
The Group and the Company do not account for any fixed rate financial assets and liabilities at fair value
through profit or loss, and the Group does not designate derivatives as hedging instruments under a fair
value hedge accounting model. Therefore, a change in interest rates at the end of the reporting period
would not affect profit or loss.
(b) Cash flow sensitivity analysis for variable rate instruments
A change of 50 basis points (bp) in interest rates at the end of the reporting period would have
increased/(decreased) the 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)
50 bp 50 bp 50 bp 50 bp
increase decrease increase decrease
2016 2016 2015 2015
RM’000 RM’000 RM’000 RM’000
Group
Floating rate instruments (646) 646 (596) 596
Company
Floating rate instruments (85) 85 (366) 366
Notes to the Financial Statements
(Cont’d.)
