Bursa Malaysia • Annual Report 2013
164
Financial Reports
35. Financial risk management objectives and policies (cont’d.)
(c) Market risk: Foreign currency risk (cont’d.)
USD
SGD
JPY
Total
RM’000
RM’000
RM’000
RM’000
Group
At 31 December 2012
Financial assets
Cash and bank balances
206,579
209
17,618
224,406
Financial liabilities
Trade payables
(206,579)
(209)
(17,618)
(224,406)
-
-
-
-
The following table demonstrates the sensitivity of the Group and of the Company’s profit after tax and equity to a reasonably possible change in the
exchange rates against the respective functional currencies of the Group’s entities, with all other variables held constant.
Group
Company
Profit
after tax
Equity
Profit
after tax
Equity
RM’000
RM’000
RM’000
RM’000
At 31 December 2013
USD - strengthen by 5% against RM
(98)
4,927
(3)
4,927
SGD - strengthen by 5% against RM
(2)
(2)
(2)
(2)
At 31 December 2012
USD - strengthen by 5% against RM
(127)
2,956
(10)
2,956
EUR - strengthen by 5% against RM
(3)
(3)
(3)
(3)
An equivalent weakening of the foreign currency as shown above would have resulted in an equivalent, but opposite, impact.
(d) Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting its financial obligations due to a shortage of funds.
(i) Liabilities related risk
The Group and the Company maintain sufficient levels of cash and cash equivalents to meet working capital requirements. The Group and the
Company also maintain a reasonable level of banking facilities for contingency operational requirements.
Notes to the Financial Statements
31 December 2013
