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TEHO INTERNATIONAL INC LTD Annual Report 2012 60
Notes to the
Financial Statements
30 June 2012
28. Financial Instruments: Information on Financial Risks (Continued)
28F. Interest Rate Risk (Continued)
Sensitivity analysis:
Group
2012
$
2011
$
A hypothetical increase in interest rates by 50 basis points
would have an adverse effect on proft before tax of 39,693 30,851
A hypothetical increase in interest rates by 100 basis
points would have an adverse effect on proft before tax
of 79,387 61,702
A hypothetical increase in interest rates by 150 basis
points would have an adverse effect on proft before tax
of 119,080 92,552
A hypothetical increase in interest rates by 200 basis
points would have an adverse effect on proft before tax
of 158,773 123,403
The analysis has been performed separately for fxed interest rate and foating interest
rate fnancial instruments. The impact of a change in interest rates on fxed interest rate
fnancial instruments has been assessed in terms of changing of their fair value. The
impact of a change in interest rates on foating interest rate fnancial instruments has
been assessed in terms of changing of their cash fows and therefore in terms of the
impact on net expenses. The hypothetical changes in basis points are not based on
observable market data (unobservable inputs).
28. Financial Instruments: Information on Financial Risks (Continued)
28G. Foreign Currency Risks
Analysis of amounts denominated in non-functional currencies:
Group
At 30 June 2012:
United
States
Dollar Euro Others Total
$ $ $ $
Financial assets:
Cash and cash equivalents 598,418 224,407 – 822,825
Loans and other receivables 408,972 452,405 1,405 862,782
Total fnancial assets 1,007,390 676,812 1,405 1,685,607
Financial liabilities:
Trade and other payables 748,115 1,047,017 239,201 2,034,333
Total fnancial liabilities 748,115 1,047,017 239,201 2,034,333
Net fnancial assets /
(liabilities) at end of the year 259,275 (370,205) (237,796) (348,726)
Group
At 30 June 2011:
United
States
Dollar Euro Others Total
$ $ $ $
Financial assets:
Cash and cash equivalents 478,548 551,692 – 1,030,240
Loans and other receivables 156,370 168,608 – 324,978
Total fnancial assets 634,918 720,300 – 1,355,218
Financial liabilities:
Trade and other payables 281,880 449,540 292,283 1,023,703
Total fnancial liabilities 281,880 449,540 292,283 1,023,703
Net fnancial assets /
(liabilities) at end of the year 353,038 270,760 (292,283) 331,515
There is exposure to foreign currency risk as part of its normal business.