Ni Hsin Berhad Annual Report 2018
23. Financial instruments (continued) 23.6 Market risk (continued) 23.6.1 Currency risk (continued) Currency risk sensitivity analysis (continued) Equity and profit or loss 2018 2017 RM’000 RM’000 Group USD (144) (61) JPY (19) (13) EUR (15) (12) A 10% (2017: 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. 23.6.2 Interest rate risk The Group’s fixed deposits and its fixed rate borrowings are exposed to a risk of change in their fair value 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 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Fixed rate instruments Financial assets 9,200 2,694 9,180 175 Financial liabilities 1,755 - - - 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 2018 94
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