Page 78 - ar2012

74 GoodLand Group Limited
Notes to the Financial Statements
30 September 2012
31 Financial Risks Management Policies (cont’d)
(b) Interest rate risk (cont’d)
Company
Variable rates
Within
12 months
S$
Non-
Interest
Bearing
S$
Total
S$
At 30 September 2012
Financial Assets
Cash and bank balances 1,410,310 - 1,410,310
Trade and other receivables - 2,259,586 2,259,586
Total Financial Assets 1,410,310 2,259,586 3,669,896
Financial Liabilities
Trade and other payables - 643,158 643,158
Total Financial Liabilities - 643,158 643,158
At 30 September 2011
Financial Assets
Cash and bank balances 177,050 - 177,050
Trade and other receivables - 4,791,487 4,791,487
Total Financial Assets 177,050 4,791,487 4,968,537
Financial Liabilities
Trade and other payables - 1,663,045 1,663,045
Total Financial Liabilities - 1,663,045 1,663,045
Sensitivity Analysis
A change of 100 basis points in variable interest rate at the reporting date would (decrease)/increase proft
after tax and equity by the amounts as shown below. This analysis assumes that all variables, including tax
rates, remain constant.
Group Company
2012
S$
2011
S$
2012
S$
2011
S$
Floating rate instruments
- 100 basis point increase (663,460) (476,994) 11,709 1,470
- 100 basis point decrease 663, 460 476,994 (11,709) (1,470)
(c) Currency risk
Currency risk arises on fnancial instruments that are denominated in a currency other than the functional
currency in which they are measured.
The Group is not exposed to signifcant foreign currency risk on its operating activities as most transactions
and balances are denominated in Singapore dollars, except for certain cash and bank balances, other
receivables and payables which are denominated in Malaysia Ringgit (“RM”) at Group level. The Company
is not exposed to signifcant foreign currency risk as all the fnancial assets and fnancial liabilities are
denominated in Singapore dollars.