DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
130
32. Financial instruments (cont’d)
32.3 Financial risk management (cont’d)
(c) Market risk (cont’d)
Currency risk sensivity analysis
A 10% (2014: 10%) strengthening of the RM against the following currencies at the end of
the reporting period. The analysis assumes that all other variable, in particular interest rates,
remained constant.
2015
2014
Profit
Profit
Equity
or loss
Equity
or loss
RM
RM
RM
RM
USD
3,853,074 3,853,074
60,766
60,766
SGD
7,424,612 7,424,612
15,532
15,532
MYR
(6,067,677) (6,067,677)
-
-
5,210,009 5,210,009
76,298
76,298
Currency risk sensitivity analysis
A 10% (2014: 10%) weakening of RM 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.
(ii) Interest rate risk
The Group’s fixed rate deposits and borrowings are exposed to a risk of change in their
fair value due to changes in interest rates. The Group’s variable rate borrowings are
exposed to a risk of change in cash flows due to changes in interest rates. Short term
other investments and short term receivables and payables are not significantly exposed
to interest rate risk.
Risk management objectives, policies and process for managing the risk
The Group monitors its exposure to changes in interest rates on a regular basis.
Borrowings are negotiated with a view to securing the best possible terms, including
interest rates, to the Group.
Notes to the
Financial Statements
(cont’d)
