QL Resources Berhad (428915-X)
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28. Financial instruments (Cont’d)
28.6 Market risk (Cont’d)
28.6.1 Currency risk (Cont’d)
Currency risk sensitivity analysis
A 1.50% (2015: 1.50%) strengthening of RM against USD at the end of the reporting period would have
increased equity and post-tax profit or loss by the amounts shown below. This analysis assumes that all other
variables, in particular interest rates, remained constant and ignores any impact of forecasted sales and
purchases.
2016 2015
Profit Profit
or (loss) or (loss)
RM’000 RM’000
Group
USD 41 424
Company
USD 2,305 1,626
A 1.50% (2015: 1.50%) weakening of RM against USD 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.
28.6.2 Interest rate risk
The Group’s and the Company’s 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 rate borrowings are exposed to a risk of
change in cash flows due to changes in interest rates. Investments in equity securities and short term receivables
and payables are not significantly exposed to interest rate risk.
Risk management objectives, policies and processes for managing the risk
In managing interest rate risk, the Group and the Company maintain a balanced portfolio of fixed and floating
rate instruments. All interest rate exposures are monitored and managed by the Group and the Company on a
regular basis.
Notes to the Financial Statements
(Cont’d.)
