FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
111
NOTES TO FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015 (CONT’D)
34 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)
(a) Market risk (Cont’d)
(i) Currency risk (Cont’d)
With all other variables including tax rate being held constant, the effects arising from the major net currency
exposure position will be as follows:
2015
2014
Increase/(Decrease)
Increase/(Decrease)
Currency
movement
Profit after
income tax
Other
component
of equity
Currency
movement
Profit after
income tax
Other
component
of equity
$’000
$’000
$’000
$’000
Group
USD against MYR
4%
5%
- strengthened
(35)
(35)
61
61
- weakened
35
35
(61)
(61)
Euro against MYR
2%
6%
- strengthened
(85)
(85)
(219)
(219)
- weakened
85
85
219
219
SGD against MYR
7%
4%
- strengthened
(26)
(26)
(10)
(10)
- weakened
26
26
10
10
Euro against SGD
6%
9%
- strengthened
6
6
(21)
(21)
- weakened
(6)
(6)
21
21
USD against SGD
3%
1%
- strengthened
133
133
33
33
- weakened
(133)
(133)
(33)
(33)
YEN against SGD
4%
3%
- strengthened
41
41
29
29
- weakened
(41)
(41)
(29)
(29)
The Company’s currency exposure based on the information provided to key management is as follows:
SGD
$’000
Euro
$’000
Total
$’000
31 December 2015
Financial assets
Cash and cash equivalents
3,667
-
3,667
Other receivables
670
-
670
Dividend receivables
3,035
1,092
4,127
7,372
1,092
8,464
Financial liabilities
Other financial liabilities
(381)
-
(381)
Borrowings
-
-
-
(381)
-
(381)
Net financial assets
6,991
1,092
8,083
Less: Net financial assets denominated in the Company’s
functional currency
(6,991)
-
Currency exposure
-
1,092
