2012 Annual Report - Media Prima Berhad

44 FINANCIAL RISK MANAGEMENT (CONTINUED)
(a)
Market risks (continued)
(i)
Foreign exchange risk
The Group operates nationally but some of its cost is exposed to foreign exchange risk arising from
various currency exposures, primarily with respect to the US Dollar. The main costs with such exposure
are programme rights and newsprint.
The Group monitors the foreign currency market closely to ensure optimal levels of inventories are
purchased when prices are favourable to mitigate purchase requirement when prices are unfavourable.
The Group has an investment in foreign operation, whose net assets is exposed to foreign currency
translation risk. Currency exposure arising from the net assets of the group’s foreign operation is not
significant to the Group’s financial position.
If the Ringgit Malaysia (“RM”) had weakened or strengthened by 10% and 20% against the foreign
currencies for which the financial instruments are denominated in, with all other variables remain
unchanged, post tax profit for the year would have been higher or lower by the following amounts:
Foreign currency denominated
financial instruments
RADIO OUTDOOR
NETWORKS
Impact of changes in exchange rate to profit and
loss (net of tax)
Trade
Trade
receivables payables Currency
as at as at translation
31 December 31 December rate as at
Foreign 2012 2012 31 December RM weaken by RM strengthen by
currency (Note 32) (Note 22) 2012 –20% –10% 10% 20%
RM’000 RM’000 RM RM’000 RM’000 RM’000 RM’000
1USD 89 (9,027) 3.0580 (1,341) (670) 670 1,341
1SGD 659 – 2.5032 99 49 (49) (99)
1EUR – (190) 4.0349 (29) (14) 14 29
1BND 42 – 2.503 6 3 (3) (6)
790 (9,217) (1,265) (632) 632 1,265
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annual
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2012
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