34. Financial risk management objectives and policies (cont’d.)
(iii) Foreign currency risk (cont’d.)
The net unhedged financial liability of the Group and Company that are not denominated in the functional
currency is as follows:
Borrowings
USD’000
RM’000
At 31 December 2015
12,700
54,508
At 31 December 2014
12,700
44,450
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity of the profit net of tax to a reasonably possible change
in USD exchange rates against the functional currency of the Group, with all other variables held
constant.
Group and Company
Effect
Effect
on profit
on profit
net of tax
net of tax
2015
2014
RM’000
RM’000
USD/RM - strengthen by 20% (2014: 10%)
(10,902)
(4,445)
- weaken by 20% (2014: 10%)
10,902
4,445
an n ual repo rt 2015
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