SEO Version
ANNUAL REPORT 2011
payments and excluding the impact of netting agreements:
Carrying
amount
Contractual
cash fows
1
$’000
$’000
$
Group and Trust
31 December 2011
Non-derivative fnancial liabilities
Borrowings^
359,865
(387,174)
(22,
Trade and other payables
36,076
(36,076)
(15,
395,941
(423,250)
(38,
Derivative fnancial liabilities
Proft rate swaps (net-settled)
4,593
(6,628)
(3,
^ For the purpose of the contractual cash fows calculation, weighted average SOR of 0.37% was used.
The maturity analyses show the undiscounted cash fows of the Group and the Trust’s fnanci
of their earliest possible contractual maturity. For derivative fnancial instruments, the cash info
the contractual undiscounted cash fows relating to these instruments. The amounts are com
derivatives that are net-settled.
It is not expected that the cash fows included in the maturity analysis of the Group and the Trust
earlier, or at signifcantly different amounts.
(e)
Market risk
Market risk is the risk that changes in market prices, such as proft rates, foreign exchange rat
affect the Group’s and Trust’s total return or the value of its holdings of fnancial instruments.
risk management is to manage and control market risk exposures within acceptable paramet
return. The Group and the Trust do not have any exposure to foreign exchange rates and equi
(f)
Proft rate risk
The Group’s exposure to fuctuations in proft rates relates primarily to borrowings. Proft rate
on-going basis with the primary objective of limiting the extent to which net proft expense coul
movements in proft rates.
As at 31 December 2011, the Group had entered into proft rates swaps with total notional co
million whereby the Group has agreed with counterparties to exchange, at specifed intervals,
the foating rate pegged to the Singapore dollar SOR and fxed rate proft amounts calculated by
notional amounts of the borrowings.
Sabana AR 2011 Financial V9.indd 99
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