for the year ended 30 June 2019NOTE 28. FINANCIAL INSTRUMENTSCONTINUEDA 5% strengthening of the Australian dollar against the various foreign currencies at the balance date would increase/(decrease) the company's profit/(loss) after tax by the amounts shown below. The analysis assumes that all other variables remain constant. AUD STRENGTHENEDEffect on profitEffect on profit % Change after tax after taxConsolidated 2019 2018USD 5%553,654 2,423,084 VND 5%248,290 219,538 CNY 5%(204,305)(297,883)MYR 5%(3,965)(36,380)THB 5%1,102,126 (23,014)SGD 5%(6,174)(5,790)EUR 5%(162) - HKD 5%1,206 (9,503) 1,690,670 2,270,052 A 5% weakening of the AUD against the various currenciescash equivalents. The consolidated entity manages its interest would have had the equal but opposite effect on the aboverate risk by using a combination of variable and fixed rate currencies to the amounts shown above, on the basis that borrowings.all other variables remain constant. As at the reporting date, the consolidated entity had the INTEREST RATE RISK following cash and cash equivalents.The consolidated entitys exposure to the risk of changesin market interest rates relates primarily to the consolidated entitys bank loans and debt obligations and its cash and 2019 2018Weighted averageWeighted average interest rate Balance interest rate BalanceConsolidated % $ % $Bank loans 8.62%(35,943,361) 8.19%(70,401,487)Cash at bank 0.54%5,695,4410.51%16,130,913 Fixed deposits 5.50%412,4865.05%1,743,941 Net exposure to cash flow interest rate risk(29,835,434)(52,526,633)An analysis by remaining contractual maturities is shown the consolidated entity. The consolidated entity has a strict in Liquidity Risk on page 73. code of credit, including obtaining agency credit information, An assessment of the sensitivity of the consolidated entitysconfirming references and setting appropriate credit limits. exposure to interest rate movements was performed and wasThe consolidated entity obtains guarantees where appropriate found to be not significant for the purposes of this disclosure. to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying CREDIT RISK amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to Credit risk refers to the risk that a counterparty will defaultthe financial statements. The consolidated entity does not hold on its contractual obligations resulting in financial loss toany collateral.72 DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT""/>
for the year ended 30 June 2019NOTE 28. FINANCIAL INSTRUMENTSCONTINUEDA 5% strengthening of the Australian dollar against the various foreign currencies at the balance date would increase/(decrease) the company's profit/(loss) after tax by the amounts shown below. The analysis assumes that all other variables remain constant. AUD STRENGTHENEDEffect on profitEffect on profit % Change after tax after taxConsolidated 2019 2018USD 5%553,654 2,423,084 VND 5%248,290 219,538 CNY 5%(204,305)(297,883)MYR 5%(3,965)(36,380)THB 5%1,102,126 (23,014)SGD 5%(6,174)(5,790)EUR 5%(162) - HKD 5%1,206 (9,503) 1,690,670 2,270,052 A 5% weakening of the AUD against the various currenciescash equivalents. The consolidated entity manages its interest would have had the equal but opposite effect on the aboverate risk by using a combination of variable and fixed rate currencies to the amounts shown above, on the basis that borrowings.all other variables remain constant. As at the reporting date, the consolidated entity had the INTEREST RATE RISK following cash and cash equivalents.The consolidated entitys exposure to the risk of changesin market interest rates relates primarily to the consolidated entitys bank loans and debt obligations and its cash and 2019 2018Weighted averageWeighted average interest rate Balance interest rate BalanceConsolidated % $ % $Bank loans 8.62%(35,943,361) 8.19%(70,401,487)Cash at bank 0.54%5,695,4410.51%16,130,913 Fixed deposits 5.50%412,4865.05%1,743,941 Net exposure to cash flow interest rate risk(29,835,434)(52,526,633)An analysis by remaining contractual maturities is shown the consolidated entity. The consolidated entity has a strict in Liquidity Risk on page 73. code of credit, including obtaining agency credit information, An assessment of the sensitivity of the consolidated entitysconfirming references and setting appropriate credit limits. exposure to interest rate movements was performed and wasThe consolidated entity obtains guarantees where appropriate found to be not significant for the purposes of this disclosure. to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying CREDIT RISK amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to Credit risk refers to the risk that a counterparty will defaultthe financial statements. The consolidated entity does not hold on its contractual obligations resulting in financial loss toany collateral.72 DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT"" />
Flipbook
b"NOTES TO THE FINANCIAL STATEMENTS >for the year ended 30 June 2019NOTE 28. FINANCIAL INSTRUMENTSCONTINUEDA 5% strengthening of the Australian dollar against the various foreign currencies at the balance date would increase/(decrease) the company's profit/(loss) after tax by the amounts shown below. The analysis assumes that all other variables remain constant. AUD STRENGTHENEDEffect on profitEffect on profit % Change after tax after taxConsolidated 2019 2018USD 5%553,654 2,423,084 VND 5%248,290 219,538 CNY 5%(204,305)(297,883)MYR 5%(3,965)(36,380)THB 5%1,102,126 (23,014)SGD 5%(6,174)(5,790)EUR 5%(162) - HKD 5%1,206 (9,503) 1,690,670 2,270,052 A 5% weakening of the AUD against the various currenciescash equivalents. The consolidated entity manages its interest would have had the equal but opposite effect on the aboverate risk by using a combination of variable and fixed rate currencies to the amounts shown above, on the basis that borrowings.all other variables remain constant. As at the reporting date, the consolidated entity had the INTEREST RATE RISK following cash and cash equivalents.The consolidated entitys exposure to the risk of changesin market interest rates relates primarily to the consolidated entitys bank loans and debt obligations and its cash and 2019 2018Weighted averageWeighted average interest rate Balance interest rate BalanceConsolidated % $ % $Bank loans 8.62%(35,943,361) 8.19%(70,401,487)Cash at bank 0.54%5,695,4410.51%16,130,913 Fixed deposits 5.50%412,4865.05%1,743,941 Net exposure to cash flow interest rate risk(29,835,434)(52,526,633)An analysis by remaining contractual maturities is shown the consolidated entity. The consolidated entity has a strict in Liquidity Risk on page 73. code of credit, including obtaining agency credit information, An assessment of the sensitivity of the consolidated entitysconfirming references and setting appropriate credit limits. exposure to interest rate movements was performed and wasThe consolidated entity obtains guarantees where appropriate found to be not significant for the purposes of this disclosure. to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying CREDIT RISK amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to Credit risk refers to the risk that a counterparty will defaultthe financial statements. The consolidated entity does not hold on its contractual obligations resulting in financial loss toany collateral.72 DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT"