ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
17.
Financial risk management objectives and policies
The Company’s activities expose it to market risk (including foreign currency risk, price risk and interest rate risk), credit risk,
liquidity risk and capital risk. The Company’s overall risk management strategy seeks to minimise adverse effects from the
unpredictability of financial markets on the Company’s financial performance. The Company sets policies, strategies and
mechanism, which aim at effective management of these risks within its operating environment.
Risk management is carried out in accordance with established policies and guidelines approved by the board of directors.
Management continually monitors the Company’s risk management process to ensure that an appropriate balance between
risk and control is achieved. Risk management objectives and policies are reviewed regularly to reflect changes in market
conditions and the Company’s activities.
(a)
Market risk
(i)
Foreign currency risk
The Company’s exposure to currency risk is minimal as its revenue, expenses, assets and liabilities are substantially
denominated in SGD.
(ii)
Price risk
As at 31 March 2015, the Company has available-for-sale investment in equity securities listed in Singapore
and is exposed to price risk.
Sensitivity analysis for price risk
If prices for the equity securities listed in Singapore change by the percentages indicated below with all other
variables including tax rates being held constant, the effects on profit after tax and equity will be as follows:
2015
2014
Profit
Profit
After Tax Equity After Tax
Equity
$’000
$’000
$’000
$’000
Equity Securities
Listed in Singapore
– increased by 27% (2014: 22%)
–
7,689
–
4,629
– decreased by 27% (2014: 22%)
–
(7,689)
–
(4,629)
(iii)
Interest rate risk
The Company is not exposed to any interest rate risk as its financial assets and liabilities are not interest-bearing.
