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Kumpulan Fima Berhad
(11817-V)
204
Notes to the
financial statements
31 march 2017
37. Financial risk management objectives and policies (cont’d.)
(c) Foreign currency risk
The Group is exposed to transactional currency risk primarily through sales and purchases that are denominated in
a currency other than the functional currency of the operations to which they relate. The currencies giving rise to this
risk are primarily Indonesian Rupiah and Papua New Guinea Kina. The Group does not practise any fund hedge for its
purchases and sales transaction.
The net unhedged financial assets and financial liabilities of the Group that are not denominated in the functional
currency of the Company are as follows:
Papua New
Indonesian
Guinea
Rupiah
Kina
Total
RM’000
RM’000
RM’000
At 31 March 2017
Assets
- Trade and other receivables
27,812
32,662
60,474
- Cash and cash equivalents
51,797
11,709
63,506
79,609
44,371
123,980
Liabilities
- Trade and other payables
11,761
8,698
20,459
At 31 March 2016
Assets
- Trade and other receivables
21,841
26,607
48,448
- Cash and cash equivalents
18,427
26,005
44,432
40,268
52,612
92,880
Liabilities
- Trade and other payables
7,843
12,300
20,143
Sensitivity analysis
The following table demonstrates the sensitivity of the Group’s profit net of tax to a reasonably possible change in the
Indonesian Rupiah (“IDR”) and Papua New Guinea Kina (“PNGK”) exchange rates against the functional currency of the
affected group companies (“RM”) with all other variables held constant.
Group
2017
2016
Effect on
Effect on
profit
profit
net of tax
net of tax
RM’000
RM’000
IDR - strengthen 5% (2016: 5%)
2,578
1,232
IDR - weaken 5% (2016: 5%)
(2,578)
(1,232)
PNGK - strengthen 7% (2016: 2%)
1,898
613
PNGK - weaken 7% (2016: 2%)
(1,898)
(613)