Notes to the Financial Statements
(Cont’d)
For the financial year ended 30 April 2016
(In Singapore Dollar)
STAMFORD TYRES CORPORATION LIMITED
100 |
DRIVING IT UP
35.
Financial risk management objectives and policies (cont’d)
(b)
Interest rate risk (cont’d)
Sensitivity analysis for interest rate risk
The table below demonstrates the sensitivity to a reasonably possible change in interest rates with
all other variables held constant, of the Group’s profit net of tax.
Increase/
(decrease) in
basis points
Decrease/
(increase) in
profit net of
tax
$’000
2016
- Singapore Dollar
50
261
- Ringgit Malaysia
50
28
- United States Dollar
50
118
- Thai Baht
50
62
- Singapore Dollar
(50)
(261)
- Ringgit Malaysia
(50)
(28)
- United States Dollar
(50)
(118)
- Thai Baht
(50)
(62)
2015
- Singapore Dollar
50
248
- Ringgit Malaysia
50
127
- United States Dollar
50
68
- Thai Baht
50
79
- Singapore Dollar
(50)
(248)
- Ringgit Malaysia
(50)
(127)
- United States Dollar
(50)
(68)
- Thai Baht
(50)
(79)
(c)
Credit risk
Credit risk is the risk that entities and individuals will be unable to meet their obligations to the
Group resulting in financial loss to the Group. It is the Group’s policy to enter into transactions
with a diversity of creditworthy parties to mitigate any significant concentration of credit risk. The
Group ensures that sales of products and services are rendered to customers with appropriate credit
history and has internal mechanisms to monitor the granting of credit and management of credit
exposures. The Group has made allowances for potential losses on credits extended.
