SECTION 4: FINANCIAL PERFORMANCE 220Registration No: 199301009307 (264044-M) 82 31. FINANCIAL INSTRUMENTS (CONT’D) 31.2 Financial risk management objectives and policies (cont’d) Financial risk (cont’d) The main areas of financial risks faced by the Group and the Company and the policy in respect of the major areas of treasury activity are set out as follows (cont’d):- (c) Interest rate risk (cont’d) Cash flows sensitivity analysis for variable rate instruments A change in 52 (2022: 100) basis point (“bp”) in interest rates at the end of the reporting period� would have increase/(decrease) profit for the year and equity by the amounts shown below. This� analysis assumes that all other variables, in particular foreign currency rates, remain constant. (d) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the respective functional currencies of Group entities. The currency giving rise to this risk is primarily United States Dollar (“USD”), Indonesia Rupiah (“IDR”), Singapore Dollar (“SGD”) and Japanese Yen (“JPY”). The Group did not enter into any forward currency contracts during the financial years ended 31 December 2023 and 31 December 2022. The Group’s exposure to foreign currency risk, based on carrying amounts as at the end of reporting period was:- USD SGD IDR JPY RM’000 RM’000 RM’000 RM’000 2023 Trade receivables 4 7,815 70 3 Other receivables 93 4,554 6,582 - Trade payables (3,335) (1,672) (2,586) (5) Other payables - (2,496) (2,401) - Cash and bank balances 365 7,427 1,431 16 (2,873) 15,628 3,096 14 Effect on Profit for the financial year/Equity Group RM’000 RM’000 2023 (+/- 52bp) (230) 230 2022 (+/- 100bp) (465) 465
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