66
NATURAL COOL HOLDINGS LIMITED
NOTES TO
THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2014
19 Financial instruments (Continued)
Risk management framework (Continued)
(iii) Market risk (Continued)
Foreign currency risk (Continued)
Sensitivity analysis
A 10% strengthening of the Singapore dollar, as indicated against the above currencies at 31
December would have decreased profit before tax by the amounts shown below. This analysis is
based on foreign currency exchange rate variances that the Group considered to be reasonably
possible at the end of the reporting period. The analysis assumes that all other variables, in particular
interest rates, remain constant and ignores any impact of forecasted sales and purchases. The
analysis is performed on the same basis for 2013, as indicated below:
Group
2014
2013
$
$
Profit before tax
SGD
(302,249)
(532,268)
USD
(217,461)
11,546
(519,710)
(520,722)
A 10% weakening of Singapore dollar against the above currencies at the reporting date would have
had the equal but opposite effect on the above currencies to the amounts shown above, on the basis
that all other variables remain constant.
Interest rate risk
Exposure to interest rate risk
At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments, as
reported to management, was as follows:
Group
2014
2013
$
$
Fixed rate instruments
Loans and borrowings
(8,001,495)
(6,758,536)
Bills payable
(13,800,923)
(16,946,689)
Fixed deposits
1,249,855
214,058
(20,552,563)
(23,491,167)
Variable rate instruments
Loans and borrowings
(13,086,759)
(10,922,471)
