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Notes to the
Financial Statements
As at 31 March 2019
39. Financial risk management objectives and policies (cont’d.)
(c) Foreign currency risk (cont’d.)
Indonesian
Rupiah
RM’000
Papua New
Guinea Kina
RM’000
Total
RM’000
At 31 March 2018
Assets
- Trade and other receivables
29,141
29,299
58,440
- Cash and cash equivalents
31,809
18,643
50,452
60,950
47,942
108,892
Liabilities
- Trade and other payables
13,948
4,888
18,836
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
2019
Effect on
profit net
of tax
RM’000
2018
Effect on
profit net
of tax
RM’000
IDR - strengthen 5% (2018: 5%)
1,765
1,786
IDR - weaken 5% (2018: 5%)
(1,765)
(1,786)
PNGK - strengthen 5% (2018:5%)
1,811
1,636
PNGK - weaken 5% (2018:5%)
(1,811)
(1,636)
(d) Credit Risk
Credit risk, or the risk of counterparties defaulting, is controlled by the application of credit approvals,
limits and monitoring procedures. Credit risk is minimised and monitored via strictly limiting the Group’s
associations to business partners with high creditworthiness. Trade receivables are monitored on an
ongoing basis via Group management reporting procedures.
The Group does not have any significant exposure to any individual customer or counterparty except with
the government agencies as disclosed in Note 20. The Group does not have any major concentration of
credit risk related to any financial instruments.
financial
statements
191