Fraser & Neave Holdings Bhd Annual Report 2021

30. FINANCIAL INSTRUMENTS #CONTINUED$ #F$ MARKET RISK #CONTINUED$ (i) Currency risk (continued) Currency risk sensitivity analysis Foreign currency risk arises from Group entities which have a RM functional currency. The exposure to currency risk of Group entities which do not have a RM functional currency is not material and hence, sensitivity analysis is not presented. A 10% (2020: 10%) strengthening of the following currencies against RM at the end of the financial year would have increased or decreased, respectively pre-tax profit or loss by the amounts shown below. This analysis assumes that all other variables remained constant. Group 2021 RM’000 2020 RM’000 USD 8,365 5,929 AUD (745) (506) SGD (76) (54) A 10% (2020: 10%) weakening of the above currencies against RM at the end of the financial year would have had equal but opposite e!ect on the above currencies to the amounts shown above, on the basis that all other variables remained constant. (ii) Interest rate risk The Group’s investments in fixed rate debt securities and its fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates. Investments in equity securities and short-term receivables and payables are not significantly exposed to interest rate risk. Exposure to interest rate risk The interest rate profile of the Group’s and the Company’s interest-bearing financial instruments, based on carrying amounts as at the end of the financial year are as follows: Group Company Note 2021 RM’000 2020 RM’000 2021 RM’000 2020 RM’000 Fixed rate instruments Short-term deposits 15 165,467 174,309 23,867 – Loans and borrowings 17 (1,000) (91,868) – – Lease liabilities (100,244) (25,667) – – Other payables – interest bearing deposits 30(e) (13,046) (12,748) – – 51,177 44,026 23,867 – Floating rate instruments Loan to a subsidiary 12.2 – – 227,557 543,877 – – 227,557 543,877 238 NOTES TO THE F INANCIAL STATEMENTS