ANNUAL REPORT 2014
107
NOTES TO THE
FINANCIAL STATEMENTS
35. Financial risk management (continued)
35.3 Market risk (continued)
35.3.1 Currency risk (continued)
Risk management objectives, policies and processes for managing the risk
The Group monitors regularly its exchange exposures and may hedge its position selectively
depending on the size of the exposure and the future outlook of the particular currency unit. The
Group uses forward exchange contracts to hedge its foreign currency risk. Most of the forward
exchange contracts have maturities of less than one year after the end of the reporting period.
Where necessary, the forward exchange contracts are rolled over at maturity.
Exposure to foreign currency risk
The Group’s exposure to foreign currency (a currency which is other than the currency of the Group
entities) risk, based on carrying amounts as at the end of the reporting period was:
Group
Denominated in
In thousands RM
USD JPY EURO AUD IDR THB
2014
Trade receivables
10,432
142 4,346 2,020 1,747
-
Trade payables
(11,705)
(8,010)
(2,203)
(18)
(5,729)
(2,589)
Forward exchange contracts
50
(23)
45
2
-
134
Net exposure
(1,223)
(7,891)
2,188 2,004 (3,982)
(2,455)
2013
Trade receivables
12,073
160 3,383
682
912
-
Trade payables
(14,885)
(12,038)
(752)
(577)
(1,391)
(8,709)
Forward exchange contracts
(113)
42
(47)
-
-
(24)
Net exposure
(2,925)
(11,836)
2,584
105
(479)
(8,733)
