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SEE HUP SENG LIMITED
Annual Report 2012
87
Notes to the Financial Statements
31 DECEMBER 2012
36 Financial Instruments (Continued)
(a) Financial Risk Management Objectives and Policies (Continued)
(i) Interest rate risk (Continued)
A 100 basis point increase/decrease in the underlying borrowings at variable rates at the reporting
date would decrease/increase profit or loss by the following amount:
Group
2012 2011
S$’000 S$’000
Profit or loss 524 500
This analysis assumes that all other variables remain constant.
The Company is not exposed to interest rate risk on variable rates as it does not have any interest
bearing borrowings as at the balance sheet date.
(ii) Credit risk
Credit risk is limited to the risk arising from the inability of a debtor to make payments when
due. It is the Group’s policy to provide credit terms to creditworthy customers. These debts are
continually monitored and therefore, the Group does not expect to incur material credit losses.
The carrying amount of trade and other receivables, loan receivable from an associated company,
cash and bank balances and fixed deposits represent the Group’s maximum exposure to credit
risk. No other financial assets carry a significant exposure to credit risk.
The credit risk for trade and other receivables based on information provided to key management
is as follows:
Group Company
2012 2011 2012 2011
S$’000 S$’000 S$’000 S$’000
By geographical areas
Singapore 38,868 23,939 8,498 8,622
Rest of South East Asia 6,163 19,853 – –
North East Asia 5,222 7,930 – –
South Asia 553 643 – –
South Pacific 431 777 – –
Middle East – – – –
51,237 53,142 8,498 8,622