ANNUAL REPORT 2014
99
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
26. FINANCIAL RISK MANAGEMENT
(CONTINUED)
(a)
Market risk
(continued)
(2)
Market price risk (continued)
The market price risk associated with these investments is the potential loss in fair value resulting from
the decrease in market prices of securities. If prices for equity and debt securities listed in Singapore
and elsewhere change by 10% (2013: 10%) with all other variables including tax rate being held
constant, the equity and other comprehensive income will be affected by:
Group
2014
2013
$’000
$’000
Listed in Singapore
- increased by
216,104
183,938
- decreased by
(216,104)
(183,938)
Listed overseas
- increased by
7,136
2,835
- decreased by
(7,136)
(2,835)
The above excludes investments in associated companies that could be traded in an active market but
are accounted for in accordance with the accounting policies stated in Note 2(c).
The Group’s investments are managed under the guidance of the Investment Committee.
(3)
Interest rate risk
The Group has insignificant financial assets or liabilities that are exposed to interest rate risks except for
bank borrowings. The Company periodically reviews its liabilities and monitors interest rate fluctuations
to ensure that the exposure to interest rate risk is within acceptable levels.
The Group does not expect to incur material losses or gains due to changes in interest rate of the
bank borrowings.
(b)
Liquidity risk
As at 31 December 2014, the Group has available cash and short term bank deposits totalling $223.1 million
(2013: $208.6 million). The cash and deposits, together with the available unutilised credit facilities are
expected to be sufficient to meet the funding requirements of the Group’s operations.
The Group does not have any material financial liabilities maturing more than 12 months from 31 December
2014.
