Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin

CTRM Aero Composites Sdn Bhd, Batu Berendam, Melaka (CTRM AC) was incorporated on 16th August 1994. CTRM Aero Composites is the 15th largest composites airframe supplier for Airbus UK. This company obtained their material sources such as glass fiber, carbon fiber, and AGS composites mainly from supp...

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Bibliographic Details
Main Author:	Nordin, Fiszatulhusna
Format:	Student Project
Language:	English
Published:	Faculty of Business and Management 2010
Subjects:	Foreign exchange. Foreign exchange rates Financial management. Business finance. Corporation finance Foreign investments. Country risk
Online Access:	http://ir.uitm.edu.my/id/eprint/24945/ http://ir.uitm.edu.my/id/eprint/24945/1/PPb_FISZATULHUSNA%20NORDIN%20M%20BM%2010_5.pdf

id	uitm-24945
recordtype	eprints
spelling	uitm-249452019-08-26T07:15:17Z http://ir.uitm.edu.my/id/eprint/24945/ Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin Nordin, Fiszatulhusna Foreign exchange. Foreign exchange rates Financial management. Business finance. Corporation finance Foreign investments. Country risk CTRM Aero Composites Sdn Bhd, Batu Berendam, Melaka (CTRM AC) was incorporated on 16th August 1994. CTRM Aero Composites is the 15th largest composites airframe supplier for Airbus UK. This company obtained their material sources such as glass fiber, carbon fiber, and AGS composites mainly from suppliers in Europe and US. Therefore, CTRM Aero Composites are using multi currencies transaction in their business and it’s important to realize the role that currencies play in the performance of company’ business. The aim of this paper is to study on how to Finance Department of CTRM Aero Composites Sdn Bhd (CTRM AC) manage the foreign currency exchange risk. This research has been conducted due to huge number of transaction done in relation to foreign currency exchange. Since CTRM AC transactions involve heavily in import (purchases) and export (sales), it is crucial for the company to measure and manage exchange rate risk exposure to reduce company’s vulnerabilities from major exchange rate movements, which could adversely affect profit margins and the value of assets. The methods use to complete the research are through primary sources of interviewing Finance Department staff as well as through secondary sources by reading of articles, journals and books related to the research. The result of the study shows the gap between the best practices on managing the foreign currency exchange risk with the current practice by Finance Department of CTRM AC. The result shows that there exist gap between procedures on managing foreign currency exchange risk current practice since the company do not have proper policy on managing the risk and not all hedging technique is fully utilized by the company. As a conclusion, there is no proper policy or procedures in managing foreign exchange risks by the company and CTRM AC use external forward contract extensively and try to apply hedging internally but ignoring other methods to hedge the foreign currency exchange risks. Faculty of Business and Management 2010 Student Project NonPeerReviewed text en http://ir.uitm.edu.my/id/eprint/24945/1/PPb_FISZATULHUSNA%20NORDIN%20M%20BM%2010_5.pdf Nordin, Fiszatulhusna (2010) Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin. [Student Project] (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Foreign exchange. Foreign exchange rates Financial management. Business finance. Corporation finance Foreign investments. Country risk
spellingShingle	Foreign exchange. Foreign exchange rates Financial management. Business finance. Corporation finance Foreign investments. Country risk Nordin, Fiszatulhusna Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin
description	CTRM Aero Composites Sdn Bhd, Batu Berendam, Melaka (CTRM AC) was incorporated on 16th August 1994. CTRM Aero Composites is the 15th largest composites airframe supplier for Airbus UK. This company obtained their material sources such as glass fiber, carbon fiber, and AGS composites mainly from suppliers in Europe and US. Therefore, CTRM Aero Composites are using multi currencies transaction in their business and it’s important to realize the role that currencies play in the performance of company’ business. The aim of this paper is to study on how to Finance Department of CTRM Aero Composites Sdn Bhd (CTRM AC) manage the foreign currency exchange risk. This research has been conducted due to huge number of transaction done in relation to foreign currency exchange. Since CTRM AC transactions involve heavily in import (purchases) and export (sales), it is crucial for the company to measure and manage exchange rate risk exposure to reduce company’s vulnerabilities from major exchange rate movements, which could adversely affect profit margins and the value of assets. The methods use to complete the research are through primary sources of interviewing Finance Department staff as well as through secondary sources by reading of articles, journals and books related to the research. The result of the study shows the gap between the best practices on managing the foreign currency exchange risk with the current practice by Finance Department of CTRM AC. The result shows that there exist gap between procedures on managing foreign currency exchange risk current practice since the company do not have proper policy on managing the risk and not all hedging technique is fully utilized by the company. As a conclusion, there is no proper policy or procedures in managing foreign exchange risks by the company and CTRM AC use external forward contract extensively and try to apply hedging internally but ignoring other methods to hedge the foreign currency exchange risks.
format	Student Project
author	Nordin, Fiszatulhusna
author_facet	Nordin, Fiszatulhusna
author_sort	Nordin, Fiszatulhusna
title	Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin
title_short	Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin
title_full	Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin
title_fullStr	Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin
title_full_unstemmed	Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin
title_sort	foreign exchange risk management by ctrm aero composites sdn bhd, batu berendam melaka / fiszatulhusna nordin
publisher	Faculty of Business and Management
publishDate	2010
url	http://ir.uitm.edu.my/id/eprint/24945/ http://ir.uitm.edu.my/id/eprint/24945/1/PPb_FISZATULHUSNA%20NORDIN%20M%20BM%2010_5.pdf
first_indexed	2023-09-18T23:13:42Z
last_indexed	2023-09-18T23:13:42Z
_version_	1777418971907096576

Foreign exchange risk management by CTRM Aero Composites Sdn Bhd, Batu Berendam Melaka / Fiszatulhusna Nordin

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