121
/ MTQ CORPORATION LIMITED /
ANNUAL REPORT
2014/2015
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
32. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)
(b)
Foreign currency risk (cont'd)
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity of the Group’s profit before tax and equity to a reasonably
possible change in the USD, GBP, AUD and SGD exchange rates (against the respective functional
currencies of the Group entities), with all other variables held constant:
Group
2015
2014
Effect
on profit
before tax
$’000
Effect
on equity
$’000
Effect
on profit
before tax
$’000
Effect
on equity
$’000
USD
– strengthened 3% (2014: 3%)
554
451
(194)
313
– weakened 3% (2014: 3%)
(554)
(451)
194
(313)
AUD
– strengthened 3% (2014: 3%)
(124)
(941)
(165)
(1,048)
– weakened 3% (2014: 3%)
124
941
165
1,048
SGD
– strengthened 3% (2014: 3%)
(248)
(64)
(6)
(64)
– weakened 3% (2014: 3%)
248
64
6
64
GBP
– strengthened 3% (2014: 3%)
(3)
–
13
–
– weakened 3% (2014: 3%)
3
–
(13)
–
(c)
Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty inmeeting financial obligations
due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from
mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective is
to maintain a balance between continuity of funding and flexibility by monitoring its net operating cash flow
through the review of its working capital requirements regularly, and maintaining an adequate level of cash
and cash equivalents and secured committed funding facilities from financial institutions.
