Singapore Press Holdings annual report 2011 Singapore Press ...

Notes to the
Financial StatementS
August 31, 2011
162 Singapore Press Holdings annual report 2011
31. FINANCIAL RISK MANAGEMENT (CONT’D)
(c)
Liquidity risk (cont’d)
Less Between Between
than 1 1 and 2 2 and 5 Over 5
year years years years
S$’000 S$’000 S$’000 S$’000
Company
At August 31, 2011
Net-settled interest rate swap (381) - - -
Gross-settled currency forwards
- Receipts 47,388 - - -
- Payments (46,993) - - -
Trade and other payables (645,037) - - -
Borrowings (116,949) (16,860) (625,290) -
(761,972) (16,860) (625,290) -
At August 31, 2010
Net-settled interest rate swap (2,015) (337) - -
Gross-settled currency forwards
- Receipts 6,114 - - -
- Payments (6,112) - - -
Trade and other payables (627,023) - - -
Borrowings (18,088) (167,065) (642,150) -
(647,124) (167,402) (642,150) -
(d)
Capital risk
The Group’s objectives for managing capital are to safeguard the Group’s ability to continue as a
going concern and to maintain an optimal capital structure so as to maximise shareholder value.
In order to maintain or achieve an optimal capital structure, the Group may adjust the amount
of dividend payment, return capital to shareholders, issue new shares, buy back issued shares,
obtain new borrowings or sell assets to reduce borrowings.
The total capital of the Group and the Company as at the balance sheet dates is represented by the
respective “Shareholders’ interests” as presented on the balance sheets.
Management uses the “Return on Shareholders’ Funds” as a measure of efficiency in managing
capital. The “Return on Shareholders’ Funds” is calculated as profit attributable to shareholders
divided by shareholders’ interests. The “Return on Shareholders’ Funds” was 17.4% per annum
for the current financial year ended August 31, 2011 (2010: 22.4% per annum). The “Return on
Shareholders’ Funds” for the last 5 years was between 17.4% and 23.5%.
The Group and the Company are in compliance with all externally imposed capital requirements for
the financial years ended August 31, 2010 and 2011. Some of the term loan facility undertaken with
the banks requires the Group or the Company to maintain a positive networth.