166 FINANCIAL STATEMENTS & OTHERS ENRA GROUP BERHAD ANNUAL REPORT 2023 Notes To The Financial Statements 31 March 2023 (Cont’d) 36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) (iv) Foreign currency risk (Cont’d) Sensitivity analysis for foreign currency risk The following table demonstrates the sensitivity analysis of the Group and of the Company to a reasonably possible change of exchange rates in the US Dollar (“USD”), British Pound (“GBP) and Singapore Dollar (“SGD”) against RM respectively, with all variables held constant. 3% is the sensitivity rate used when reporting foreign currency risk exposures internally to key management personnel and represents management’s assessment of the possible change in foreign exchange rates. Group Company 2023 2022 2023 2022 RM’000 RM’000 RM’000 RM’000 (Loss)/Profit after tax USD/RM - strengthen by 3% (2022: 3%) (39) (145) - - - weaken by 3% (2022: 3%) 39 145 - - GBP/RM - strengthen by 3% (2022: 3%) 128 358 - (254) - weaken by 3% (2022: 3%) (128) (358) - 254 SGD/RM - strengthen by 3% (2022: 3%) (51) - (51) - - weaken by 3% (2022: 3%) 51 - 51 - 37. LEGAL CLAIMS DURING THE YEAR (a) Disputes between a contractor and ESPM Group Arbitration on claim against ESPML On 22 July 2020, ESPML, a 60% owned indirect subsidiary of the Company received from PT Cakra Manunggal Semesta (“PT CMS”), a Notice for Arbitration to commence arbitration proceedings at the Asian International Arbitration Centre, Kuala Lumpur. The alleged claim arises out of a BIMCO Standard Bareboat Charter “BARECON 2001” (“Charterparty”) dated 16 October 2017 between ESPML and PT CMS for the vessel known as “MT. BRATASENA” and a Settlement Agreement dated 9 December 2019 between ESPML, PT CMS, ENRA SPM Sdn. Bhd. and Sea Trust Marine Pte Ltd, a related company to PT CMS (“Settlement Agreement”). PT CMS allegedly claimed that ESPML is in breach and/or repudiatory breach and/or anticipatory repudiatory breach of the Charterparty and/or Settlement Agreement. On 6 May 2021, PT CMS served its first memorial and related documents including Witness Statement and expert report on ESPML and claimed approximately USD5.57 million. On 11 August 2021, ESPML served its first memorial together with the related documentary evidence including Witness Statement and expert report on PT CMS to defend itself and to counter claim for loss and damages (including fines and penalties) in the excess of USD10.00 million.
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