130 / 152
Notes to the
financial statements
For the financial year ended 31 December 2018
128
B A K E R T E C H N O L O G Y
L I M I T E D
26.
Directors’ and executives’ remuneration
Directors’ remuneration and fees amounted to $1,177,000 (2017: $976,000) and $273,000
(2017: $263,000) respectively.
The number of directors of the Company with remuneration received from the Company and all of
its subsidiaries fall within the following bands:-
Company
2018
2017
$500,000 to $999,999
1
1
$250,000 to $499,999
1
1
Below $250,000
5
5
Total
7
7
27.
Financial risk management objectives and policies
The Group and the Company are exposed to financial risks arising from its operations and the
use of financial instruments. The key financial risks include interest rate risk, liquidity risk, credit
risk and foreign currency risk. The Group does not speculate in the currency markets or hold
or issue derivatives financial instruments. The Board reviews and agrees policies and procedures
for the management of these risks. The Audit Committee provides independent oversight to the
effectiveness of the risk management process.
There has been no change to the Group’s exposure to these financial risks or the manner in which
it manages and measures the risks for financial year 2018.
(a)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the
Company’s financial instruments will fluctuate because of changes in market interest rates.
The Group’s and the Company’s exposure to the interest rate risk arises primarily from their
borrowings. The Group’s and Company’s floating rate borrowings are contractually re-priced
at intervals of 6 months from the end of the reporting period.
Sensitivity analysis for interest rate risk
At the end of the reporting period, if SGD interest rates had been 50 basis points lower/
higher with all other variables held constant, the Group’s profit before tax would have been
$19,000 higher/lower, arising mainly as a result of lower/higher interest expense on floating
rate borrowings.