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Annual Report 2020
212
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
42. Financial risk management objectives and policies (cont'd.)
(b) Liquidity/funding risk (cont'd.)
Analysis of financial instruments by remaining contractual maturities (cont'd.)
Contractual cashflow
on demand or within
one year
2020
RM'000
2019
RM'000
Company
Financial liabilities:
Trade and other payables
2,447
2,252
Due to subsidiaries
4,518
6,818
Short term borrowings
33,490
34,506
Total undiscounted financial liabilities
40,455
43,576
(c) Foreign exchange 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, Papua New Guinea Kina and United States Dollar. The Group does not practise
any fund hedge for its purchases and sales transaction.
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"), United States Dollar ("USD") 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
2020
Effect on
profit
net of tax
RM’000
2019
Effect on
profit
net of tax
RM’000
USD - strengthen 5% (2019: 5%)
12
11
USD - weaken 5% (2019: 5%)
(12)
(11)
IDR - strengthen 5% (2019: 5%)
2,113
1,765
IDR - weaken 5% (2019: 5%)
(2,113)
(1,765)
PNGK - strengthen 5% (2019:5%)
2,718
1,811
PNGK - weaken 5% (2019:5%)
(2,718)
(1,811)