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244
Gamuda Berhad (29579-T) • Annual Report 2012
44. Financial risk management objectives and policies (cont’d.)
(e)
Foreign currency risk (cont’d.)
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity of the Group’s profit net of tax to a reasonably possible change
in the VND, USD, BhD, NTD, qR and INR exchange rates against the respective functional currencies of the
Group entities, with all other variables held constant.
Profit for the year
Group
Company
2012
2011
2012
2011
RM’000
RM’000
RM’000
RM’000
VND/RM - strengthened 5% (2011: 5%)
43,276
36,563
-
-
- weakened 5%
(2011: 5%)
(43,276)
(36,563)
-
-
USD/RM - strengthened 5% (2011: 5%)
(33,311)
(24,741)
(35,487)
(24,711)
- weakened 5%
(2011: 5%)
33,311
24,741
35,487
24,711
BhD/RM - strengthened 5% (2011: 5%)
1,108
938
1,108
-
- weakened 5%
(2011: 5%)
(1,108)
(938)
(1,108)
-
NTD/RM - strengthened 5% (2011: 5%)
205
443
30
-
- weakened 5%
(2011: 5%)
(205)
(443)
(30)
-
qR/RM
- strengthened 5% (2011: 5%)
2,992
4,986
163
-
- weakened 5%
(2011: 5%)
(2,992)
(4,986)
(163)
-
INR/RM
- strengthened 5% (2011: 5%)
2,286
2,708
-
-
- weakened 5%
(2011: 5%)
(2,286)
(2,708)
-
-
45. Capital management
The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and
healthy capital ratios in order to support its business and maximise shareholder value. The capital management
approaches remain unchanged for the current and previous years.
The Group monitors and maintains a prudent level of gearing ratio, which is net debt divided by total capital, to
optimise shareholders value and to ensure compliance under debt covenants.
The Group monitors capital using a gearing ratio, which is net debt divided by total capital. The Group includes within
net debt, loans and borrowings less cash and bank balances. Capital includes equity attributable to the owners of the
parent and non controlling interests.
NoTES To ThE FINANCIAL STATEMENTS
31 July 2012