FY 2011 Annual Report - Sheng Siong

Sheng Siong Annual Report 2011
Notes to the Financial Statements
25 Financial risk management (Continued)
Market risk
Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and equity
prices will affect the Group’s income or the value of 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.
Foreign currency risk
The Group minimizes foreign exchange exposure by transacting where possible, in Singapore Dollar, the base
currency, and at the balance sheet date, the Group is not exposed to any significant foreign currency risk.
Interest rate risk
The Group manages its interest rate exposure by actively reviewing its debt portfolio to achieve a certain level
of protection against adverse interest rate movements. As at balance sheet date, the Group is not exposed to
any significant interest rate risk.
Fair value
Other financial assets and liabilities
The notional amounts of financial assets and liabilities with a maturity of less than one year or which reprice
frequently (including other receivables, cash and cash equivalents, accrued operating expenses, and other
payables) approximate their fair values because of the short period to maturity/repricing.
26 Subsequent events
Subsequent to 31 December 2011, the Group disposed off its assets held for sale (see Note 6) for a
consideration of $15,000,000. The sale was completed on 20 January 2012.
27 Comparative information
No comparative figures are available for the Company’s financial statements as this is the first set of financial
statements of the Company prepared since its incorporation. Comparative figures shown in the Group’s financial
statements were prepared on the basis described in Note 2.
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