Dagang NeXchange Berhad Annual Report 2019

FINANCIAL STATEMENTS annual report 2019 177 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 2019 2018 Company RM’000 RM’000 Balances recognised in the statement of financial position Cash and cash equivalents 14 13 Net exposure 14 13 Currency risk sensitivity analysis A 10% (2018: 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 2019 2018 2019 2018 RM’000 RM’000 RM’000 RM’000 USD (1,178) (1,871) (1) (1) Euro 151 53 - - GBP 83 128 - - SGD (10) (17) - - IDR (6) - - - A 10% (2018: 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. 30.6.2 Interest 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.