FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
112
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)
The Company’s currency exposure based on the information provided to key management is as follows:
(Cont’d)
SGD
$’000
Euro
$’000
Total
$’000
31 December 2014
Financial assets
Cash and cash equivalents
2,092
-
2,092
Other receivables
968
361
1,329
Dividend receivables
2,760
1,535
4,295
5,820
1,896
7,716
Financial liabilities
Other financial liabilities
(360)
-
(360)
Borrowings
(400)
-
(400)
(760)
-
(760)
Net financial assets
5,060
1,896
6,956
Less: Net financial assets denominated in the Company’s
functional currency
(5,060)
-
Currency exposure
-
1,896
If the Euro changes against the SGD by 6% (2014 : 9%) with all other variables including tax rate being held
constant, the effects arising from the net currency exposure position will be as follows:
2015
2014
Increase/(Decrease)
Profit after
income tax
$’000
Other
component
of equity
$’000
Profit after
income tax
$’000
Other
component
of equity
$’000
Company
Euro against SGD
- strengthened
54
54
142
142
- weakened
(54)
(54)
(142)
(142)
(ii) Price risk
The price risk does not impact the Group as it is not exposed to equity security price risk and commodity price
risk from financial instruments.
