Notes to the Financial Statements
31 December 2015
35.
Financial risk management objectives and policies (cont’d)
(a)
Interest rate risk
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Company’s exposure to interest rate risk arises primarily from the Group’s floating rate loans and
borrowings and cash and short term deposits.
Sensitivity analysis for interest rate risk
At the end of the reporting period, if SGD interest rates had been 100 (2014: 100) basis points higher/lower
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S$1,537,000) higher/lower, arising mainly as a result of higher/lower interest income on cash and short
term deposits, and the carrying amount of the Group’s development properties as at 31 December 2015
would have been S$251,000 (2014: S$210,000) higher/lower, arising mainly as a result of higher/lower
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(b)
Credit risk
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default on its obligations. The Group’s and the Company’s exposure to credit risk arises primarily from
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term deposits), the Group and the Company minimise credit risk by dealing exclusively with high credit
rating counterparties.
The Group trades only with recognised and creditworthy third parties or government authorities. It is
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procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the
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Exposure to credit risk
As at the end of the reporting period, the Group’s and the Company’s maximum exposure to credit risk is
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Since the Group trades only with recognised and creditworthy third parties or government authorities,
there is no requirement for collateral.
Financial assets that are neither past due nor impaired
Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good
payment record with the Group. Cash and short term deposits and investment securities that are neither
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with high credit ratings and no history of default.
HOCK LIAN SENG HOLDINGS LIMITED
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