For the financial year ended 31 December 2015
99
ANNUAL REPORT 2015
27. FINANCIAL RISK MANAGEMENT
(CONTINUED)
(a) Market risk
(continued)
(2) Foreign currency risk
The Group operates in Asia and through distributors in other parts of the world, with its principal operations
in Singapore. Entities in the Group regularly transact in currencies other than their respective functional
currencies (“foreign currencies”). The Group, under the guidance of the Investment Committee, manages
its foreign currency exposures by a policy of matching, as far as possible, receipts and payments in each
individual currency. As such, working capital of the Group is not exposed to significant currency risks.
The Group also has available forward contract facilities to hedge future foreign exchange exposure. The
surplus of convertible currencies are either further matched with future foreign currency requirements or
exchanged for Singapore Dollar.
The Investment Committee also monitors the foreign currency fluctuations on non-financial assets including
net foreign currency exposure on investment in overseas subsidiaries.
The Group’s currency exposure of financial assets/liabilities net of those denominated in the respective
entities’ functional currency based on the information provided to key management is as follows:
USD
HKD
JPY
Others
Total
$’000
$’000
$’000
$’000
$’000
Group
At 31 December 2015
Cash and cash equivalents and
available-for-sale financial assets
46,016
140,620
55,544
1,270
243,450
Borrowings
–
–
(43,547)
–
(43,547)
Currency exposure on financial
assets and liabilities
46,016
140,620
11,997
1,270
199,903
At 31 December 2014
Cash and cash equivalents and
available-for-sale financial assets
24,049
113
48,246
17,555
89,963
Borrowings
(14,662)
–
(41,670)
–
(56,332)
Currency exposure on financial
assets and liabilities
9,387
113
6,576
17,555
33,631
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
