DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
132
32. Financial instruments (cont’d)
32.3 Financial risk management (cont’d)
(c) Market risk (cont’d)
Currency risk sensitivity analysis (cont’d)
(ii) Interest rate risk (cont’d)
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points (bp) in interest rates at the end of the reporting period
would have increased/(decreased) post-tax profit or loss by the amounts shown below.
This analysis assumes that all other variables, in particular foreign currency rates, remain
constant.
2015
2014
Profit or loss
Profit or loss
100bp
100bp
100bp
100bp
increase decrease increase decrease
RM
RM
RM
RM
Group
Floating rate instruments
11,264,000 (11,264,000)
1,154,000 (1,154,000)
Company
Floating rate instruments
5,058,000 (5,058,000)
-
-
(iii) Other price risk
Equity price risk arises from the Group’s investments in equity securities.
Risk management objectives, policies and processes for managing the risk
Management monitors the equity investments on a portfolio basis. Material investments
within the portfolio are managed on an individual basis and all buy and sell decisions are
approved by management.
There is no sensitivity analysis performed as any change will be insignificant to the Group.
32.4 Fair value information
The carrying amounts of cash and cash equivalents, short term receivables and payables and short
term deposits and borrowings approximate fair value due to the relatively short term nature of these
financial instruments.
The fair value of other investments is disclosed in Note 13, which is based on their quoted closing
market prices and the net asset value of the unit trust at the reporting date.
Notes to the
Financial Statements
(cont’d)
