183 / 204
Notes To The
Financial Statements
As at 31 March 2019
36. Financial risk management objectives and policies (cont’d.)
(b) Foreign exchange risk
The Group operates internationally and is exposed to various currencies, mainly Indonesian Rupiah. Foreign
currency denominated assets and liabilities together with expected cash flows from highly probable
purchases and sales give rise to foreign exchange exposures.
Foreign exchange exposures in transactional currencies other than functional currencies of the operating
entities are kept to an acceptable level. There are no material unhedged financial assets and financial
liabilities that are not denominated in the functional currencies of the Company and its subsidiaries.
Sensitivity analysis
The carrying amounts of the Group's financial assets and liabilities denominated in foreign currency are as
follows:
2019
2018
RM’000
RM’000
IDR
Assets
- Trade and other receivables
26,411
29,141
- Cash and cash equivalents
27,984
31,809
54,395
60,950
Liabilities
- Trade and other payables
7,937
13,948
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
2019
2018
Effect on
profit
net of tax
RM’000
Effect on
profit
net of tax
RM’000
IDR - strengthens 5% (2018: 5%)
+1,765
+1,786
IDR - weakens 5% (2018: 5%)
-1,765
-1,786
financial
statements
179