140 / 168
Datasonic Group Berhad
(Company No. 809759-X)
138
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)
(ii) Interest Rate Risk (Cont’d)
The Group’s exposure to interest rate risk based on the carrying amounts of the
financial instruments at the end of the financial year/period is disclosed in Notes 22,
23 and 28 to the financial statements.
Interest Rate Risk Sensitivity Analysis
The following table details the sensitivity analysis to a reasonably possible change
in the interest rates at the end of the financial year/period, with all other variables
held constant:-
Group
Company
2016
2015
2016
2015
RM’000
RM’000
RM’000
RM’000
Effects on Profit
After Taxation
Increase of 100
basis points (bp)
(946)
(977)
(99)
(118)
Decrease of
100 bp
946
977
99
118
(iii) Equity Price Risk
The Group’s principal exposure to equity price risk arises mainly from changes in
quoted investment prices. The Group manages its exposure to equity price risk by
maintaining a portfolio of equities with different risk profiles.
Equity Price Risk Sensitivity Analysis
If prices for quoted investments at the end of the reporting period strengthen by 1%
with all other variables being held constant, the Group and the Company’s profit
after taxation and equity would have increased by RM158,000. A 1% weakening in
the quoted prices would have had an equal but opposite effect on the profit after
taxation and equity of the Group and Company.
(b) Credit Risk
The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly
from trade and other receivables. The Group manages its exposure to credit risk by the
application of credit approvals, credit limits and monitoring procedures on an ongoing
basis. For other financial assets (including cash and bank balances), the Group minimises
credit risk by dealing exclusively with high credit rating counterparties.