| |
|
| b. |
Credit Risk
The Group monitors its exposure to credit risks arising from sales to trade customers on an on-going basis, and credit evaluations are done on customers that require credit. The credit quality of customers is assessed after taking into account its financial position and past experience with the customers.
The Group only deals with pre-approved customers and financial institutions with good credit rating. To minimise the Group’s counterparty risk, the Group enters into derivative transactions only with creditworthy institutions. Cash and fixed deposits are placed in banks and financial institutions with good credit rating.
As the Group and the Company does not hold any collateral, the maximum exposure to credit risk is the carrying amount of each financial asset, including derivative financial instruments, in the balance sheet.
The Group’s and the Company’s maximum exposure to credit risk for loans and receivables at the balance sheet date is as follows: |
| |
|
| |
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
By business activity |
|
|
|
|
Utilities |
527,117 |
580,889 |
38,381 |
— |
Marine |
575,379 |
543,899 |
— |
— |
Environment |
36,524 |
41,174 |
— |
— |
Industrial parks |
5,150 |
10,640 |
— |
— |
Others |
32,149 |
40,085 |
4,791 |
23,386 |
|
1,176,319 |
1,216,687 |
43,172 |
23,386 |
|
| |
|
| |
The age analysis of current trade and other receivables is as follows: |
| |
|
| |
|
Gross |
Impairment |
Gross |
Impairment |
|
2008 |
2008 |
2007 |
2007 |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
Group |
|
|
|
|
Not past due |
752,178 |
8,343 |
849,454 |
1,075 |
Past due 0 to 3 months |
79,483 |
2,840 |
80,284 |
562 |
Past due 3 to 6 months |
17,779 |
2,582 |
46,019 |
892 |
Past due 6 to 12 months |
9,128 |
1,009 |
31,352 |
1,562 |
More than 1 year |
53,842 |
23,904 |
80,451 |
36,568 |
|
912,410 |
38,678 |
1,087,560 |
40,659 |
Company |
|
|
|
|
Not past due |
32,457 |
— |
670 |
— |
Past due 0 to 3 months |
3,054 |
— |
15,232 |
— |
Past due 3 to 6 months |
1,292 |
— |
2,036 |
— |
Past due 6 to 12 months |
606 |
— |
3,073 |
— |
More than 1 year |
691 |
247 |
1,162 |
60 |
|
38,100 |
247 |
22,173 |
60 |
|
| |
|
| |
Movements in the allowance for impairmment of current and non-current trade and other receivables are as follows: |
| |
|
| |
|
Group |
Company |
|
2008 |
2007 |
2008 |
2007 |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
Balance at beginning of the year |
57,985 |
87,046 |
60 |
60 |
Currency translation difference |
(686) |
(129) |
— |
— |
Allowance made |
11,546 |
2,893 |
187 |
— |
Allowance utilised |
(4,355) |
(16,673) |
— |
— |
Allowance written back |
(10,255) |
(13,183) |
— |
— |
Acquisition of subsidiaries |
— |
(53) |
— |
— |
Disposal of subsidiaries |
(897) |
(1,916) |
— |
— |
Balance at end of the year |
53,338 |
57,985 |
247 |
60 |
|
| |
|
| |
The allowance account in respect of trade and other receivables is used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible. At that point, the financial asset is considered irrecoverable and the amount charged to the allowance account is written against the carrying amount of the impaired financial asset. |
| |
|
| c. |
Liquidity risk
The Group manages its liquidity risk with the view to maintaining a healthy level of cash and cash equivalents appropriate to the operating environment and expected cash flows of the Group. Liquidity requirements are maintained within the credit facilities established and are adequate and available to the Group to meet its obligations.
The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities (including derivative financial liabilities) based on expected contractual undiscounted cash inflows / (outflows), including interest payments and excluding the impact of netting agreements: |
| |
|
| |
|
|
Cash Flows
 |
|
Carrying amount |
Contractual cash flow |
Less than 1 year |
Between
1 and 5 years |
Over
5 years |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Group |
|
|
|
|
|
2008 |
|
|
|
|
|
Derivatives |
|
|
|
|
|
Derivative financial liabilities |
231,826 |
|
|
|
|
– inflow |
|
2,958,465 |
2,246,599 |
711,866 |
— |
– outflow |
|
(3,188,897) |
(2,417,282) |
(771,202) |
(413) |
|
|
|
|
|
|
Derivative financial assets |
(4,261) |
|
|
|
|
– inflow |
|
156,629 |
156,629 |
— |
— |
– outflow |
|
(152,368) |
(152,368) |
— |
— |
|
|
|
|
|
|
Non-derivative financial liabilities |
|
|
|
|
|
Trade and other payables* |
2,272,217 |
(2,273,268) |
(2,260,683) |
(12,585) |
— |
Interest–bearing borrowings |
808,318 |
(840,870) |
(301,407) |
(450,008) |
(89,455) |
|
3,308,100 |
(3,340,309) |
(2,728,512) |
(521,929) |
(89,868) |
|
|
|
|
|
|
2007 |
|
|
|
|
|
Derivatives |
|
|
|
|
|
Derivative financial liabilities |
31,212 |
|
|
|
|
– inflow |
|
218,737 |
198,479 |
20,258 |
— |
– outflow |
|
(252,313) |
(228,799) |
(23,466) |
(48) |
|
|
|
|
|
|
Derivative financial assets |
(15,319) |
|
|
|
|
– inflow |
|
789,983 |
784,607 |
5,376 |
— |
– outflow |
|
(775,080) |
(770,218) |
(4,862) |
— |
|
|
|
|
|
|
Non-derivative financial liabilities |
|
|
|
|
|
Trade and other payables* |
2,174,903 |
(2,174,903) |
(2,164,864) |
(10,039) |
— |
Bank overdrafts |
889 |
(889) |
(889) |
— |
— |
Interest – bearing borrowings |
1,332,791 |
(1,400,733) |
(568,279) |
(647,201) |
(185,253) |
|
3,524,476 |
(3,595,198) |
(2,749,963) |
(659,934) |
(185,301) |
|
| |
|
| |
|
|
Cash Flows
 |
|
Carrying amount |
Contractual cash flow |
Less than 1 year |
Between
1 and 5 years |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
Company |
|
|
|
|
2008 |
|
|
|
|
Trade and other payables* |
774,713 |
(834,605) |
(327,976) |
(506,629) |
|
|
|
|
|
2007 |
|
|
|
|
Trade and other payables* |
249,183 |
(249,183) |
(249,183) |
— |
Interest-bearing borrowings |
150,000 |
(153,103) |
(153,103) |
— |
|
399,183 |
(402,286) |
(402,286) |
— |
|
| |
* Excludes deposits, advance payments from customers and share of net liability of an associate. |
| |
|
| |
The following table indicates the periods in which the cash flow associated with derivatives that are cash flow hedges are expected to impact the income statement. |
| |
|
| |
|
|
Cash Flows
|
|
Carrying amount |
Contractual cash flow |
Less than 1 year |
Between
1 and 5 years |
Over
5 years |
|
S$’000 |
S$’000 |
S$’000 |
S$’000 |
S$’000 |
|
|
|
|
|
|
Group |
|
|
|
|
|
2008 |
|
|
|
|
|
Derivative financial liabilities |
228,200 |
|
|
|
|
– inflow |
|
2,849,920 |
2,138,054 |
711,866 |
— |
– outflow |
|
(3,076,726) |
(2,305,111) |
(771,202) |
(413) |
|
|
|
|
|
|
Derivative financial assets |
(27,330) |
|
|
|
|
– inflow |
|
94,605 |
94,605 |
— |
— |
– outflow |
|
(67,275) |
(67,275) |
— |
— |
|
200,870 |
(199,476) |
(139,727) |
(59,336) |
(413) |
|
|
|
|
|
|
2007 |
|
|
|
|
|
Derivative financial liabilities |
28,633 |
|
|
|
|
– inflow |
|
180,316 |
160,058 |
20,258 |
— |
– outflow |
|
(211,477) |
(187,963) |
(23,466) |
(48) |
|
|
|
|
|
|
Derivative financial assets |
(60,301) |
|
|
|
|
– inflow |
|
60,685 |
54,263 |
6,422 |
— |
– outflow |
|
— |
— |
— |
— |
|
(31,668) |
29,524 |
26,358 |
3,214 |
(48) |
|
|
|
|
|
|
