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Datasonic Group Berhad
(Company No. 809759-X)
137
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
46. FINANCIAL INSTRUMENTS (CONT’D)
46.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(a) Market Risk (Cont’d)
(i) Foreign Currency Risk (Cont’d)
The Company does not have any transactions or balances denominated in foreign
currencies and hence, is not exposed to foreign currency risk.
Foreign Currency Risk Sensitivity Analysis
The following table details the sensitivity analysis to a reasonably possible change in
the foreign currencies at the end of the financial year/period, with all other variables
held constant:-
Group
2016
2015
RM’000
RM’000
Effects on Profit After Taxation
USD/RM:
- strengthened by 5%
(265)
(42)
- weakened by 5%
265
42
EUR/RM:
- strengthened by 5%
(40)
-
- weakened by 5%
40
-
CHF/RM:
- strengthened by 5%
(#)
-
- weakened by 5%
#
-
Note:
# - Amount less than RM1,000.
(ii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. The Group’s
exposure to interest rate risk arises mainly from long-term borrowings with variable
rates. The Group’s policy is to obtain the most favourable interest rates available
and by maintaining a balanced portfolio of fixed and floating rate borrowings.
The Group’s fixed rate deposits and borrowings are carried at amortised cost.
Therefore, they are not subject to interest rate risk as defined in MFRS 7 since neither
the carrying amounts nor the future cash flows will fluctuate because of a change
in market interest rates.