ANNUAL REPORT 2016
79
Techno
Dex
Berhad
(627634-A)
34. FINANCIAL INSTRUMENTS (continued)
34.1 FINANCIAL RISK MANAGEMENT POLICIES (continued)
(a) Market Risk (continued)
(i) Foreign Currency Risk (continued)
EUR
USD
Total
RM
RM
RM
At 30 April 2016
Cash and bank balances
4,235
76,611
80,846
Trade payables
-
8,719
8,719
At 30 April 2015
Cash and bank balances
4,219
-
4,219
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity of the Group’s profit net of tax and equity to a
reasonable possible change in the USD and EUR exchange rates against the respective functional
currencies of the Group entities, will all other variables held constant.
Effect on profit net of tax/equity net of tax
2016
2015
RM
RM
USD/RM - strengthened 10%
5,160
-
- weakened 10%
(5,160)
-
EUR/RM - strengthened 10%
321
321
- weakened 10%
(321)
(321)
(ii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Group’s exposure to interest rate risk
arises mainly from interest-bearing financial assets and liabilities. The Group’s policy is to obtain the
most favourable interest rates available. Any surplus funds of the Group will be placed with licensed
financial institutions to generate interest income.
Information relating to the Group’s exposure to the interest rate risk of the financial liabilities is
disclosed in Note 34.1(c) to the financial statements.
Interest rate risk sensitivity analysis
The Group is not exposed to interest rate risk as the interest-bearing financial instruments carry fixed
interest rates and are measured at amortised costs. As such, sensitivity analysis is not disclosed.
(iii) Equity Price Risk
The Group is exposed to equity price risk arising from its investment in quoted equity instruments.
The quoted equity instruments in China are listed on Shanghai Stock Exchange (SSE).
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
