Annual Report 2023

267 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 33 Financial risk management and fair values of financial instruments (continued) (d) Currency risk (continued) (i) Exposure to currency risk (continued) Exposure to foreign currencies (expressed in Hong Kong dollars) 2023 2022 British Pound Sterling United States dollars British Pound Sterling United States dollars $’000 $’000 $’000 $’000 Bank deposits and cash 3,162 605,844 2,633 540,413 Accounts payable and accruals (103,633) (859) (67,410) (929) Investments in financial assets measured at FVOCI (recycling) – 597,355 – 812,924 Gross exposure arising from recognised assets and liabilities (100,471) 1,202,340 (64,777) 1,352,408 (ii) Sensitivity analysis The table below indicates the instantaneous change in the Group’s profit after tax (and retained profits) and other components of consolidated equity that would arise if foreign exchange rates to which the Group has significant exposure at the end of the reporting period had changed at that date, assuming all other risk variables remained constant. In this respect, it is assumed that the pegged rate between Hong Kong dollars and United States dollars would be materially unaffected by any changes in movement in value of United States dollars against other currencies. 2023 2022 Increase/ (decrease) in foreign exchange rates (Decrease)/ increase in profit after tax and retained profits Increase/ (decrease) in foreign exchange rates (Decrease)/ increase in profit after tax and retained profits $’000 $’000 British Pound Sterling 6% (5,002) 6% (3,219) (6)% 5,002 (6)% 3,219 Results of the analysis as presented in the above table represent an aggregation of the instantaneous effects on each of the Group entities’ profit after tax and equity measured in the respective functional currencies, translated into Hong Kong dollars at the exchange rate ruling at the end of the reporting period for presentation purposes. The sensitivity analysis assumes that the change in foreign exchange rates had been applied to re-measure those financial instruments held by the Group which expose the Group to foreign currency risk at the end of the reporting period, including inter-company payables and receivables within the Group which are denominated in a currency other than the functional currencies of the lender or the borrower. The analysis excludes differences that would result from the translation of the financial statements of operations outside Hong Kong into the Group’s presentation currency. The analysis is performed on the same basis for 2022.