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172
NOTES TO THE FINANCIAL STATEMENTS
F I N A N C I A L S TAT E M E N T S
36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)
(b) Foreign Exchange Risk (Cont’d.)
Sensitivity analysis (Cont’d.)
The following table demonstrates the sensitivity of the Group’s profit net of tax to a reasonably possible change in the
Indonesian Rupiah (“IDR”) exchange rates against the functional currency of the affected group companies (“RM”) with
all other variables held constant.
Group
2018
2017
Effect
on profit
net of tax
Effect
on profit
net of tax
RM’000
RM’000
IDR - strengthens 5% (2017: 5%)
+1,786
+2,506
IDR - weakens 5% (2017: 5%)
-1,786
-2,506
(c) Liquidity/Funding Risk
The Group defines liquidity/funding risk as the risk that funds will not be available to meet its liabilities as and when they
fall due.
The Group actively manages its operating cash flows and the availability of funding so as to ensure that all funding
needs are met. As part of its overall prudent liquidity management, the Group maintains sufficient levels of cash or
cash convertible instruments to meet its working capital requirements. To ensure availability of funds, the Group closely
monitors its cash flow position on a regular basis.
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Group and of the Company’s liabilities at the reporting date based
on contractual undiscounted repayment obligations.
Contractual
cashflow on demand
or within one year
2018
2017
RM’000
RM’000
Group
Financial liabilities:
Trade and other payables (Note 30)
36,884
82,761
Amount due to related companies (Note 20)
166
627
Total undiscounted financial liabilities
37,050
83,388