Maxis Berhad | Annual Report 2012

Maxis Berhad // Annual Report 2012 167 FINANCIAL STATEMENTS CORPORATE GOVERNANCE ANALYSIS OF SHAREHOLDINGS OTHER INFORMATION ANNUAL GENERAL MEETING 33 FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Market risk (continued) (i) Foreign exchange risk (continued) Currency exposure at 1 January 2011 Company SGD USD SDR GBP Others RM’000 RM’000 RM’000 RM’000 RM’000 Functional currency Ringgit Malaysia Deposits, bank and cash balances – 1 – – – Syndicated term loans – (2,595,934) – – – Gross exposure – (2,595,933) – – – CCIRSs: - syndicated term loans – 2,595,934 – – – Net exposure – 1 – – – The sensitivity of the Group’s and of the Company’s profit before tax for the year and equity to a reasonably possible change in the USD exchange rates against the Group’s and the Company’s functional currency, RM, with all other factors remaining constant and based on the composition of assets and liabilities at the reporting date are set out as below. Impact on profit before tax for the year Impact on equity (1) Group and Group Company Company 2012 2011 2012 2011 2012 2011 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 USD/RM - strengthened 5% (2011: 5%) (14,855) (9,648) – – 11,040 13,268 - weakened 5% (2011: 5%) 14,855 9,648 – – (11,040) (13,268) Note: (1) Represents cash flow hedging reserve The impacts on profit before tax for the year are mainly as a result of foreign currency gains/losses on translation of USD denominated receivables, deposits, bank balances and payables. For USD denominated borrowings, as these are effectively hedged, the foreign currency movements will not have any impact on the income statement. Other balances denominated in foreign currencies are not significant and hence, profit is not materially impacted.