4 FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Financial risk management policies (continued) Market risk (continued) (iii) Finance rate risk (continued) The finance rate profile of the Group’s and Company’s finance bearing financial liabilities, based on carrying amounts as at the end of the reporting period is as follows: Group Company 2024 2023 2024 2023 RM’000 RM’000 RM’000 RM’000 Financial liabilities At fixed rate Loans due to a subsidiary – – 320,289 973,764 Sukuk 1,149,932 796,773 1,149,932 796,773 Islamic short term trade financing 2,073,060 1,991,255 – – Short term trade financing 6,010 6,178 – – Hire purchase 98,338 105,330 342 571 Islamic term loans 18,908 21,976 – – 3,346,248 2,921,512 1,470,563 1,771,108 At floating rate (exposed to cash flow finance rate risk) Islamic term loans 251,411 411,290 – – Sukuk 149,976 100,000 149,976 100,000 At fair value (exposed to cash flow finance rate risk) LLA liability 3,663,487 3,513,813 – – 4,064,874 4,025,103 149,976 100,000 7,411,122 6,946,615 1,620,539 1,871,108 If discount rate on LLA liability increased/decreased by 50 basis points and finance rate on borrowings decreased/increased by 100 basis points with all other variables held constant, the profit after tax of the Group will increase by RM181,279,000 (2023: RM138,673,000) and decrease by RM201,889,000 (2023: RM154,648,000) respectively. Other financial assets and financial liabilities are non-interest bearing and therefore are not affected by changes in finance rates. FGV Holdings Berhad | Audited Financial Statements 2024 Notes to the Financial Statements For the financial year ended 31 December 2024 60
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