34. FINANCIAL INSTRUMENTS (CONTINUED) 34.6 Market risk (continued) 34.6.1Foreign currency risk (continued) Currency risk sensitivity analysis A 10% (31.12.2023: 10%) strengthening of Ringgit Malaysia against the following currencies at the end of the reporting period would have decreased post-tax profit or loss by the amounts shown below. This analysis assumes that all other variables, remained constant. Group Company Profit or loss Profit or loss 1.1.2024 to 1.7.2022 to 1.1.2024 to 1.7.2022 to 31.12.2024 31.12.2023 31.12.2024 31.12.2023 RM’000 RM’000 RM’000 RM’000 USD (622) (2,479) (91) (2,274) Euro 164 168 - - GBP (19,122) (14,103) - - SGD - 12 - - IDR (1) - - - JPY - 136 - - A 10% (31.12.2023: 10%) weakening of Ringgit Malaysia against the above currencies at the end of the reporting period would have had equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remained constant. There is no impact on the Group’s and the Company’s equity. 34.6.2Interest 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 loan and borrowings with variable rates. The Group’s policy is to obtain the most favourable interest rates available and by maintaining a balanced portfolio mix of fixed and floating rate borrowings. The Group’s fixed deposits with licensed banks and fixed rate loans and borrowings are carried at amortised cost. Therefore, they are not subject to interest rate risk as defined in MFRS 7 since neither carrying amounts nor the future cash flows will fluctuate because of a change in market interest rates. The Group’s exposure to interest rate risk based on the carrying amounts of the financial instruments at the end of the reporting period is disclosed in Note 19 to the financial statements. 193 Financial Statements DAGANG NeXCHANGE BERHAD Integrated Report 2024 NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 December 2024
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