NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2025 31. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D) Interest rate risk (cont’d) Sensitivity analysis for interest rate risk The following table demonstrates the sensitivity to a 1% (2024: 1%) change in the interest rates with all other variables held constant on the Group’s profit before tax. Group Profit before tax 2025 2024 $’000 $’000 SGD Increase in 1% interest rate (983) (791) Decrease in 1% interest rate 983 791 USD Increase in 1% interest rate (709) (169) Decrease in 1% interest rate 709 169 GBP Increase in 1% interest rate (47) (57) Decrease in 1% interest rate 47 57 EUR Increase in 1% interest rate 1 1 Decrease in 1% interest rate (1) (1) AUD Increase in 1% interest rate (253) (110) Decrease in 1% interest rate 253 110 The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment. Liquidity risk Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities. The Group’s and the Company’s liquidity risk management policy is to maintain sufficient liquid financial assets and stand-by credit facilities with different banks. At the end of the reporting period, 98% (2024: 84%) of the Group’s loans and borrowings (Note 14) will mature in less than one year based on the carrying amount reflected in the financial statements. 180 CSE GLOBAL LIMITED
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