MKH Annual Report 2017

40. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued) Sensitivity analysis for foreign currency risk The following table demonstrates the sensitivity of the Group’s profit for the financial year to a reasonably possible change in the USD exchange rate against their respective functional currencies, with all other variables held constant. Profit for the financial year 2017 2016 The Group RM RM USD/RM Strengthened 5% 491,700 478,700 Weakened 5% (491,700) (478,700) USD/RMB Strengthened 3% 105,100 82,600 Weakened 3% (105,100) (82,600) USD/IDR Strengthened 5% (9,657,800) (10,887,600) Weakened 5% 9,657,800 10,887,600 Translation reserve 2017 2016 The Group RM RM IDR/RM Strengthened 5% 381,790 403,543 Weakened 5% (381,790) (403,543) RMB/RM Strengthened 3% 829,269 806,382 Weakened 3% (829,269) (806,382) Notes to the Financial Statements For the Financial Year ended 30 September 2017 197 MKH Berhad • Annual Report 2017