notes to the financial statements - Singapore Technologies ...

SINGAPORE TECHNOLOGIES ENGINEERING LTD Annual Report 2011211NOTES TO THE FINANCIAL STATEMENTS31 December 2011(Currency - Singapore dollars unless otherwise stated)46. Segment information (continued)(b)Analysis by country of incorporationRevenue is based on the country of incorporation regardless of where the goods are produced or services rendered. Non-current assets,excluding derivative financial instruments and deferred tax assets, are based on the location of those assets.RevenueNon-current assets2011 2010 2011 2010$’000 $’000 $’000 $’000Asia 4,173,232 4,188,454 1,276,954 1,184,597USA 1,483,184 1,447,716 597,017 596,400Europe 283,815 286,115 332,210 341,582Others 50,647 62,188 108,888 108,8185,990,878 5,984,473 2,315,069 2,231,397(c)Analysis by geographical areasRevenue is based on the location of customers regardless of where the goods are produced or services rendered.Revenue2011 2010$’000 $’000Asia 3,566,778 3,328,265USA 1,541,931 1,552,782Europe 484,600 754,802Others 397,569 348,6245,990,878 5,984,47347. Financial risk management objectives and policiesThe Group and the Company are exposed to financial risks, namely, interest rate, foreign exchange, market, liquidity and credit risks, arising from itsoperations and the use of financial instruments. The Group’s principal financial instruments, other than foreign exchange contracts and derivatives,comprise bankers’ guarantees, performance bonds, bank loans and overdrafts, finance leases and hire purchase contracts, investments, cash and shorttermdeposits. All financial transactions with the banks are governed by banking facilities duly accepted with Board of Directors’ resolutions, with bankingmandates, which define the permitted financial instruments and facilities limits. All financial transactions require dual signatories. The Group has variousother financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.It is the Group’s policy not to engage in foreign exchange and/or derivatives speculation. The purpose of engaging in treasury transactions is solely forhedging. The Group’s treasury mandates allow only foreign exchange spot, forward or non-deliverable forward, foreign exchange swap, cross currencyswap, purchase of foreign exchange call, put or collar option, forward rate agreement, interest rate swap, purchase of interest rate cap, floor orcollar option (“Permitted Transactions”). These instruments are generic in nature with no embedded or leverage features and any deviation from theseinstruments would require specific approval from the Board of Directors. The Group’s accounting policies in relation to derivatives are set out in Note 3.