Registration No. 200301030845 (633265-K) - 141 - 36. Financial Instruments (Cont’d) (b) Financial risk management objectives and policies (Cont’d) (iii) Market risks (Cont’d) (b) Interest rate risk (Cont’d) 2026 2025 RM RM Company Financial Liabilities Floating rate instruments Bank borrowings 2,774,411 3,677,447 Interest rate risk sensitivity analysis 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. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss. Cash flow sensitivity analysis for floating rate instruments A change in 0.25% interest rate at the end of the reporting period would have decreased the Group’s profit before tax by RM158,779 (2025: RM175,994) and increased the Company’s loss before tax by RM6,936 (2025: decreased profit before tax by RM9,194) respectively, arising mainly as a result of higher interest expense on floating rate loans and borrowings. This analysis assumes that all other variables remain constant. The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment. NOTES TO THE FINANCIAL STATEMENTS DESTINI BERHAD 254 ANNUAL REPORT 2026
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