UOBKH/AR09 [web] - ChartNexus

The Group’s exposure is primarily in the Singapore market. If equity prices increase by 5% in the Singapore market, the impact on
profit after tax and equity, with all other variables including tax rate being held constant will be:
2009 2008
Profit after tax Equity
Increase
Profit after tax Equity
$ $ $ $
The Group
Listed in Singapore 1,294,533 335,068 80,956 406,982
Listed on other exchanges 139 76,533 3,577 513,293
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In determining the percentage of the market fluctuation, the Group has considered the economic environments in which it operates.
A 5% decrease in equity prices would have had the equal but opposite effect on profit after tax and equity to the amounts shown
above, on the basis that all other variables remain constant.
(iii) Cash flow and fair value interest rate risk
Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in
market interest rates.
The Group’s interest income and interest expense are exposed to changes in market interest rates. Interest rate risk arises from
financial assets such as receivables from share financing, overdue trade receivables, short-term deposits with banks and interest on
borrowings from banks. The Group’s bank deposits and borrowings are generally short-term. The interest expenses for short-term
borrowings are at market rates which are generally fixed at the inception of the borrowings. Interest income from share financing
and on overdue trade debts are generally pegged to the respective currencies’ prime rates.
If interest rates had been 100 basis points higher or lower and all other variables were held constant, the Group’s profit for the year
ended 31 December 2009 would increase/(decrease) by $8,764,126 (2008 : $10,532,158).
The tables below set out the Group and the Company’s exposure to interest rate risks. Included in the tables are assets and liabilities
at carrying amounts, categorised by the earlier of contractual repricing or maturity dates.
Variable rates Fixed rates Fixed rates
Less than Less than More than Non- interest
6 months 6 months 6 months bearing Total
$ $ $ $ $
The Group
At 31 December 2009
Assets
Cash and cash equivalents 94,043,308 38,690,500 – 48,044,222 180,778,030
Trade receivables – 1,155,395,634 – – 1,155,395,634
Other financial assets – – 13,091,769 1,103,009,034 1,116,100,803
Investments in associates – – – 96,958 96,958
Non-financial assets – – – 85,651,166 85,651,166
Total assets 94,043,308 1,194,086,134 13,091,769 1,236,801,380 2,538,022,591
Liabilities
Borrowings 13,348,427 411,460,149 – – 424,808,576
Other financial liabilities – – – 1,065,481,457 1,065,481,457
Non-financial liabilities – – – 20,897,198 20,897,198
Total liabilities 13,348,427 411,460,149 – 1,086,378,655 1,511,187,231
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