Excel Force MSC Berhad Annual Report 2015

NOTES TO THE FINANCIAL STATEMENTS 31 December 2015 (cont’d) E X C E L F O R C E M S C B E R H A D • A N N U A L R E P O R T 2 0 1 5 109 33. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) (iv) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument would fluctuate because of changes in foreign exchange rates. The Group and the Company are exposed to foreign currency risk on transactions that are denominated in currencies other than the functional currencies of the operating entities. The Group also holds cash and bank balances denominated in foreign currencies for working capital purposes. At the end of the reporting period, such foreign currency balances in United States Dollar amounted to RM419,542 (2014: RM299,708), in Singapore Dollar amounted to RM8,328 (2014: RM14,606) and in New Taiwan Dollar amounted to RM NIL (2014: RM2,549) for the Group. Sensitivity analysis for foreign currency risk The following table demonstrates the sensitivity of the Group’s profit net of tax to a reasonably possible change in the United States Dollar (‘USD’), Singapore Dollar (‘SGD’) and New Taiwan Dollar (‘TWD’) exchange rates against the functional currency of the Group’s entities, with all other variables held constant. Group and Company 2015 2014 RM RM Profit after tax USD/RM - strengthen by 2% (2014: 2%) 6,293 4,496 - weaken by 2% (2014: 2%) (6,293) (4,496) SGD/RM - strengthen by 2% (2014: 2%) 8,289 3,132 - weaken by 2% (2014: 2%) (8,289) (3,132) TWD/RM - strengthen by 2% - 40 - weaken by 2% - (40) 34. ACQUISITIONS OF SUBSIDIARIES In the previous financial year, on 3 November 2014, the Company acquired fifty one percent (51%) equity interest comprising 306,000 ordinary shares of RM1.00 each of the issued and paid up ordinary share capital of Winvest Global Sdn. Bhd. (‘Winvest’) for a cash consideration of RM306,000. Winvest is a company incorporated in Malaysia which is engaged in research, development and commercialisation of share investment solution and provision of investment education and training services to investors.