Notes to the Financial Statements - SingTel

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Notes to the Financial StatementsFor the financial year ended 31 March 201136.4 Credit RiskFinancial assets that potentially subject the Group to concentrations of credit risk consist primarily of trade receivables, cashand cash equivalents, marketable securities and financial instruments used in hedging activities.The Group has no significant concentration of credit risk from trade receivables due to its diverse customer base. Creditrisk is managed through the application of credit assessment and approvals, credit limits and monitoring procedures. Whereappropriate, the Group obtains deposits or bank guarantees from customers or enters into credit insurance arrangements.The Group places its cash and cash equivalents and marketable securities with a number of major and high credit ratingcommercial banks and other financial institutions. Derivative counter-parties are limited to high credit rating commercial banksand other financial institutions. The Group has policies that limit the financial exposure to any one financial institution.36.5 Liquidity RiskTo manage liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by themanagement to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. Due to the dynamic natureof the underlying business, the Group aims at maintaining flexibility in funding by keeping both committed and uncommittedcredit lines available.36.6 Market RiskThe Group has investments in quoted equity shares.market conditions.The market value of these investments will fluctuate with176 SINGAPORE TELECOMMUNICATIONS LIMITED AND SUBSIDIARY COMPANIES
Notes to the Financial StatementsFor the financial year ended 31 March 201137. SEGMENT INFORMATIONSegment information is presented based on the information reviewed by the chief operating decision maker for performancemeasurement and resource allocation.The Group’s reportable segments are as follows -Singapore – represent the services and products provided by SingTel and its subsidiaries (excluding Optus).Australia – represent the services and products provided by Optus, a wholly-owned subsidiary of the Group domiciled inAustralia.Associates & Joint Ventures (“Assoc & JV”) – represent the Group’s investments in associated and joint venture companieswhich mainly comprise Advanced Info Service Public Company Limited (“AIS”) in Thailand, Bharti in India, Globe Telecom, Inc.(“Globe”) in the Philippines, and PT Telekomunikasi Selular (“Telkomsel”) in Indonesia.The main services and products provided in both Singapore and Australia are mobile communications, data and Internet,national telephone, information technology and engineering, sale of equipment, international telephone and pay television.The accounting policies used to derive the reportable operating segment results are consistent with those described in the“Significant Accounting Policies” note to the financial statements.Segment results represent operating revenue less expenses. Corporate costs represent the costs of the Group function notallocated to the reportable operating segments.Segment assets represent assets directly managed by each segment, and primarily include receivables, property, plant andequipment, and inventories. Assets managed at corporate level include cash and bank balances, fixed deposits and AFSinvestments.Segment capital expenditure comprise additions to property, plant and equipment and intangible assets.The Group’s revenue from its major products and services are disclosed in Note 4.The Group has a large and diversified customer base which consists of individuals and corporations. There was nosingle customer that contributed 10% or more of the Group’s revenue for the financial years ended 31 March 2011 and31 March 2010.ANNUAL REPORT 2010/2011 177
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Notes to the Financial Statements - SingTel

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