EXCEL FORCE MSC BERHAD 111 Notes to the Financial Statements (cont’d) 34. FINANCIAL INSTRUMENTS (CONT’D) (b) Financial risk management objectives and policies (cont’d) (iii) Market risks (cont’d) (2) Foreign currency risk (cont’d) The following table demonstrates the sensitivity of the Group’s and the Company’s profit before tax for the financial year to a reasonably possible change in the USD and SGD exchange rates against the functional currencies of the Group and of the Company, with all other variables held constant. Group and Company 2021 2020 Change in currency rate Effect on profit before tax Change in currency rate Effect on profit before tax RM RM USD Strengthened 10% 24,280 Strengthened 10% 39,354 Weakened 10% (24,280) Weakened 10% (39,354) SGD Strengthened 10% 9,369 Strengthened 10% 5,364 Weakened 10% (9,369) Weakened 10% (5,364) (c) Fair value of financial instruments The carrying amounts of short-term receivables and payables, cash and cash equivalents and short-term borrowings approximate their fair value due to the relatively short-term nature of these financial instruments and insignificant impact of discounting. It was not practicable to estimate the fair value of investment in unquoted equity due to the lack of comparable quoted prices in an active market and the fair value cannot be reliably measured. The table below analyses financial instruments carried at fair value, together with their fair value and carrying amount shown in the statements of financial position. Fair value of financial instruments carried at fair value Total fair value Carrying amount Level 1 Level 2 Level 3 RM RM RM RM RM Group and Company 2021 Financial assets Quoted shares 17,801,700 - - 17,801,700 17,801,700 Short-term funds 10,440,367 - - 10,440,367 10,440,367 28,242,067 - - 28,242,067 28,242,067 2020 Financial assets Quoted shares 13,042,200 - - 13,042,200 13,042,200 Short-term funds 19,875,977 - - 19,875,977 19,875,977 32,918,177 - - 32,918,177 32,918,177 Transfer between levels of fair value hierarchy There is no transfer between levels of fair value hierarchy during the financial year.
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