135 / 168
Datasonic Group Berhad
(Company No. 809759-X)
133
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
45. FOREIGN EXCHANGE RATES
The applicable closing foreign exchange rates used (expressed on the basis of one unit of foreign
currency to RM equivalent) for the translation of foreign currency balances at the end of the financial
year/period were as follows:-
2016
2015
RM
RM
United States Dollar (“USD”)
3.90
3.70
New Zealand Dollar (“NZD”)
2.70
2.76
Euro (“EUR”)
4.43
4.02
Swiss Franc (“CHF”)
4.05
N/A
Note:
N/A – Not applicable.
46. FINANCIAL INSTRUMENTS
The Group’s activities are exposed to a variety of market risks (including foreign currency risk, interest
rate risk and equity price risk), credit risk and liquidity risk. TheGroup’s overall financial risk management
policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group’s financial performance.
46.1 FINANCIAL RISK MANAGEMENT POLICIES
The Group’s policies in respect of the major areas of treasury activity are as follows:-
(a) Market Risk
(i) Foreign Currency Risk
The Group is exposed to foreign currency risk on transactions and balances that are
denominated in currencies other than the respective functional currencies of entities
within theGroup. The currencies giving rise to this risk are primarily United States Dollar,
New Zealand Dollar, Euro and Swiss Franc. Foreign currency risk is monitored closely
on an ongoing basis to ensure that the net exposure is at an acceptable level. The
Group also holds cash and cash equivalents denominated in foreign currencies for
working capital purposes.
The Group’s exposure to foreign currency risk (a currency other than the functional
currency of the entities within the Group) that based on the carrying amounts of the
financial instruments at the end of the financial year/period is summarised below:-