Page 108 - TreasuryChinaTrust2011

SEO Version

View Full Version

Table of Contents

Page 107

Page 109

106

Notes to the Financial Statements

28 FINANCIAL RISK MANAGEMENT (CONTINUED)

(b)

Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its

financial liabilities that are to be settled by delivering cash or another financial asset. The Group’s approach to

managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities

when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage

to the Group’s reputation.

The Trustee-Manager monitors and maintains a level of cash and cash equivalents deemed adequate by

management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows.

The following are the contractual maturities of financial liabilities, including interest payments and excluding the

impact of netting agreements:

Cash flows

Carrying

amount

Contractual

cash flows

Within

1 year

Within

1 to 5

years

Over

5 years

$’000

Group

31 December 2011

Non-derivative financial

liabilities

Interest-bearing borrowings

(842,971)

(989,563)

(109,237)

(818,111)

(62,215)

Debt securities

(68,041)

(103,795)

(5,009)

(98,786)

–

Deferred consideration

(13,950)

–

(13,950)

–

Trade and other payables

(excluding advance from

customers)

(93,681)

–

(1,018,643)

(1,200,989)

(207,927)

(930,847)

(62,215)

Derivative financial liabilities

Interest rate swap

(126)

–

Convertible bond derivative

(88)

–

(88)

–

(214)

(126)

(88)

–

31 December 2010

Non-derivative financial

liabilities

Interest-bearing borrowings

(656,458)

(769,750)

(32,770)

(736,980)

–

Trade and other payables

(excluding advance from

customers)

(64,822)

–

(721,280)

(834,572)

(97,592)

(736,980)

–

SAR1112034_TCT_AR_().indb 106

3/23/2012