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28 FINANCIAL RISK MANAGEMENT (CONTINUED)
(b) Liquidity risk (Continued)
Liquidity risk (Continued)
Cash flows
Carrying
amount
Contractual
cash flows
Within
1 year
Within
1 to 5
years
Over
5 years
$’000 $’000 $’000 $’000 $’000
Trust
31 December 2011
Non-derivative financial
liabilities
Debt securities (68,041) (103,795) (5,009) (98,786) –
Trade and other payables (22,721) (22,721) (22,721) – –
(90,762) (126,516) (27,730) (98,786) –
Derivative financial liabilities
Interest rate swap (126) (126) (126) – –
Convertible bond derivative (88) (88) – (88) –
(214) (214) (126) (88) –
31 December 2010
Non-derivative financial
liabilities
Trade and other payables (4,478) (4,478) (4,478) – –
(c) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income and its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters while optimising the
return on risk. Market risk is managed through established policies and guidelines. These policies and guidelines
are reviewed regularly taking into consideration changes in the overall market environment.
The Group buys and sells derivatives, and also incurs financial liabilities, in order to manage market risk.
Foreign currency risk
The Group incurs foreign currency risk as a result of its operations in the PRC and interest-bearing liabilities.
The currency giving rise to this risk at the balance sheet date is primarily the USD.
SAR1112034_TCT_AR_().indb 107 3/23/2012