年報 - HKExnews

NOTES TO THE FINANCIAL STATEMENTS
31 March 2010
39. FINANCIAL RISK MANAGEMENT OBJECTIVES
AND POLICIES (continued)
Interest rate risk
The Group’s exposure to the risk of changes in market
interest rates relates primarily to the Group’s long term
debt obligations with floating interest rates.
The Group’s policy is to manage its interest cost using
an appropriate mix of fixed and variable rate debts. To
manage this mix in a cost-effective manner, the Group
may enter into interest rate swap contracts to reduce its
exposure to interest rate fluctuations.
The following table demonstrates the sensitivity to a
reasonably possible change in interest rates, with all other
variables held constant, of the Group’s profit before tax
(through the impact on floating rate borrowings) and the
Group’s and the Company’s equity.
39.
Group Company
Increase/
(decrease)
in interest rate
Increase/
(decrease)
in profit before
tax and equity
Increase/
(decrease)
in profit before
tax and equity
% HK$’000 HK$’000
2010
Hong Kong dollar 1 (11,794) (3,187)
Hong Kong dollar (1) 11,794 3,187
2009
Hong Kong dollar 1 (11,777) (3,931)
Hong Kong dollar (1) 11,777 3,931
TEXWINCA HOLDINGS LIMITED ANNUAL REPORT 2010
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