34.
FINANCIAL RISK MANAGEMENT (CONTINUED)
(d)
Foreign currency risk (continued)
Sensitivity analysis for foreign currency risk (continued)
Increase/(decrease)
Profit before tax
2015
2014
$’000
$’000
Group
USD/SGD – strengthened 2% (2014: 2%)
468
315
– weakened 2% (2014: 2%)
(468)
(315)
SGD/MYR – strengthened 2% (2014: 2%)
1
119
– weakened 2% (2014: 2%)
(1)
(119)
USD/MYR – strengthened 2% (2014: 2%)
–
98
– weakened 2% (2014: 2%)
–
(98)
MYR/SGD – strengthened 2% (2014: 2%)
–
29
– weakened 2% (2014: 2%)
–
(29)
Increase/(decrease)
Profit before tax
2015
2014
$’000
$’000
Company
USD/SGD – strengthened 2% (2014: 2%)
442
283
– weakened 2% (2014: 2%)
(442)
(283)
(e)
Market price risk
Market price risk is the risk that fair value or future cash flows of the Group’s financial
instruments will fluctuate because of changes in market prices (other than interest or exchange
rates). The Group is exposed to equity price risk arising from its investment in quoted equity
instruments. These instruments are quoted on the SGX-ST in Singapore and are classified as
held for trading.
Sensitivity analysis for equity price risk
At 31 December 2015, the Group did not hold such financial instruments and no exposure to
market price risk. At 31 December 2014, if the STI had been 2% higher/lower with all other
variables held constant, this would have given rise to higher/lower fair value gains in held
for trading equity instruments and the Group’s profit before tax would have been $2,200
higher/lower.
125
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
