NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
124
ANNUAL REPORT 2015/2016
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
2016
2015
Effect
on profit
before tax
$’000
Effect
on equity
$’000
Effect
on profit
before tax
$’000
Effect
on equity
$’000
USD
– strengthened 3% (2015: 3%)
272
777
554
451
– weakened 3% (2015: 3%)
(272)
(777)
(554)
(451)
AUD
– strengthened 3% (2015: 3%)
(14)
(464)
(124)
(941)
– weakened 3% (2015: 3%)
14
464
124
941
SGD
– strengthened 3% (2015: 3%)
(41)
(270)
(248)
(64)
– weakened 3% (2015: 3%)
41
270
248
64
GBP
– strengthened 3% (2015: 3%)
(5)
–
(3)
–
– weakened 3% (2015: 3%)
5
–
3
–
(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.
