Dagang NeXchange Berhad Annual Report 2018

30. FINANCIAL INSTRUMENTS (CONTINUED) 30.6 Market risk (continued) 30.6.1 Foreign currency risk (continued) Exposure to foreign currency risk (continued) Denominated in USD 2018 2017 Company RM’000 RM’000 Balances recognised in the statement of financial position Cash and cash equivalents 13 13 Net exposure 13 13 Currency risk sensitivity analysis A 10% (2017: 10%) strengthening of Ringgit Malaysia against the following currencies at the end of the reporting period would have decreased post-tax profit or loss by the amounts shown below. This analysis assumes that all other variables, remained constant. Group Company Profit or loss Profit or loss 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 USD (1,871) 273 (1) (1) Euro 53 70 - - GBP 128 88 - - SGD (17) (20) - - A 10% (2017: 10%) weakening of Ringgit Malaysia 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. 30.6.2Interest rate risk The Group’s and the Company’s investments in fixed rate debt securities and its fixed rate borrowings are exposed to a risk of change in their fair value due to changes in interest rates. The Group’s and the Company’s variable borrowings are exposed to a risk of change in cash flows due to changes in interest rates. 171 Annual Report 2018 Notes to the Financial Statements (CONTINUED) FINANCIAL STATEMENTS