WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
106
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
5.
F I NANC I AL I NSTRUMENTS , F I NANC I AL R I SKS AND CAP I TAL
MANAGEMENT
– continued
(b)
Financial risk management policies and objectives
– continued
(i)
Foreign exchange risk management
– continued
Foreign currency sensitivity – continued
If the relevant foreign currency weakens by 5% against the functional currency of each
Group entity, post-tax profit for the year will increase (decrease) by:
THE GROUP
THE COMPANY
2016
2015
2016
2015
HK$’000
HK$’000
HK$’000
HK$’000
United States dollars
(i)
5,092
4,326
–
–
HK$
(i)
2,604
2,229
–
–
YEN
(ii)
422
331
–
–
Chinese renminbi
(iii)
(26)
(29)
–
–
Euro
–
–
–
–
Singapore dollars
(61)
(72)
(67)
(79)
Taiwan dollars
(iv)
–
(410)
–
–
If the relevant foreign currency strengthens by 5% against the functional currencies
of each Group entity, there would be an equal and opposite impact on the profit after
income tax.
Notes:
(i)
This is mainly attributable to the exposure on bank balances, trade receivables and payables
as at year end. Since the HK$ remains closely pegged to United States dollar, the sensitivity
analysis excludes the group entities with functional currencies denominated in HK$ or United
States dollar.
(ii)
This is mainly attributable to the exposure on bank balances, trade receivables and payables
denominated in YEN as at end of the reporting period.
(iii)
This is mainly attributable to the exposure on bank balances denominated in Chinese renminbi
as at end of the reporting period.
(iv)
This is mainly attributable to the exposure on intra-group balances denominated in Taiwan
dollars as at end of the reporting period.
