Page 168 - MSM_AR2020

CHAIRMAN’S DELIVERING MSM MANAGEMENT DISCUSSION GROUP FINANCIAL
STATEMENT VALUE OVERVIEW & ANALYSIS REPORT

NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

4 FINANCIAL RISK MANAGEMENT (CONTINUED)

(a) Financial risk management policies (continued)
Market risk (continued)
(iii) Finance rate risk
The Group’s finance rate risk mainly arises from term loans. Term loans issued at variable rates expose the Group
to cash flow finance rate risk.
The finance rate profile of the Group’s finance bearing financial assets, based on carrying amounts as at the end
of the financial year was:
166
Group Company
2020 2019 2020 2019
MSM MALAYSIA HOLDINGS BERHAD Annual Report 2020
RM’000 RM’000 RM’000 RM’000
Financial assets
At fixed rate:
Fixed deposits 127,748 143,652 16,688 29,282
At floating rate (exposed to cash flow finance rate risk):
Loans to subsidiaries - - 1,002,053 1,059,698
127,748 143,652 1,018,741 1,088,980

The finance rate profile of the Group’s finance bearing financial liabilities, based on carrying amounts as at the end
of the reporting period was:
Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000
Financial liabilities
At fixed rate:
Loan due to a related company 47,152 70,431 10,108 37,116
Borrowings 354,550 341,156 - -
401,702 411,587 10,108 37,116

At floating rate (exposed to cash flow finance rate risk):
Borrowings 552,550 703,628 552,550 703,628
Loan due to a subsidiary - - 128,856 94,758

552,550 703,628 681,406 798,386
954,252 1,115,215 691,514 835,502