Notes to the Financial Statements - Swissco Holdings Limited

Notes
to the Financial Statements
For the financial year ended 31 December 2009
30. Financial risk management (continued)
(a)
Market risk (continued)
(i)
Currency risk (continued)
SGD USD Total
$ $ $
At 31 December 2008
Financial assets
Cash and cash equivalents 1,672,031 2,641,107 4,313,138
Financial assets, available-for-sale 21,090,000 – 21,090,000
Trade and other receivables 4,125,368 11,970,079 16,095,447
26,887,399 14,611,186 41,498,585
Financial liabilities
Trade and other payables 10,825,248 12,655,347 23,480,595
Borrowings 25,848,803 – 25,848,803
36,674,051 12,655,347 49,329,398
Net financial (liabilities)/assets (9,786,652) 1,955,839 (7,830,813)
Less: Net financial liabilities denominated in
the respective entities’ functional currencies 9,786,652 –
Less: Firm commitments in foreign currency* – (46,034,931)
Currency exposure on financial assets
and liabilities – (44,079,092)
* Expenditure contracted for the purchase of vessels/barges
At 31 December 2009, if the USD had strengthened/weakened by 5% (2008: 5%) against the
SGD with all other variable including tax rate being held constant, the Group’s profit after tax
for the financial year would have been S$591,528 (2008: S$97,792) higher/lower as a result of
net currency translation gains/losses on USD-denominated cash and cash equivalents, trade
and other receivables, trade and other payables and borrowings.
(ii)
Price risk
The Group and the Company are exposed to equity securities price risk on investments
classified as financial assets, available-for-sale. These securities are listed in Singapore. The
Group monitors closely the performance of the investee company, including its trading price.
The Group is not exposed to commodity price risk.
If prices for the equity securities listed in Singapore had changed by 10% (2008: 5%)
respectively with all other variables including tax rate being held constant, the Group’s and
Company’s equity would have been S$2,754,000 (2008: S$1,054,500) higher/lower.
Swissco International Limited Annual Report 2009
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