Ni Hsin Berhad Annual Report 2017

24. Financial instruments (continued) 24.6 Market risk (continued) 24.6.1 Currency risk (continued) Profit or loss 2017 2016 RM’000 RM’000 Group USD (61) (119) SGD - (22) JPY (13) (26) EUR (12) (14) A 10% (2016: 10%) weakening of RM against the above currencies at the end of the reporting period would have had equal but opposite effect on the above currencies to the amounts shown above, on the basis that all other variables remained constant. 24.6.2 Interest rate risk The Group’s investments in fixed deposits are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s variable rate borrowings are exposed to a risk of change in cash flows due to changes in interest rates. Short term receivables and payables are not significantly exposed to interest rate risk. Risk management objectives, policies and processes for managing the risk The Group has an informal policy in place and the exposure to interest rate risk is monitored on an ongoing basis. Exposure to interest rate risk The interest rate profile of the Group’s and the Company’s significant interest-bearing financial instruments based on carrying amounts as at the end of the reporting period was: Group Company 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Fixed rate instruments Financial assets 2,694 189 175 170 Financial liabilities - (87) - - Floating rate instruments Financial liabilities - (167) - - Interest rate risk sensitivity analysis Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, and the Group does not designate derivatives as hedging instruments under a fair value hedge accounting model. Therefore, a change in interest rates at the end of the reporting period would not affect profit or loss. Notes to the financial statements (continued) Annual Report 2017 87