NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
138
COSCO Corporation (Singapore) Limited
34.
Financial risk management
(continued)
(c)
Liquidity risk
The Group adopts prudent liquidity risk management by maintaining sufficient cash and having an
adequate amount of committed credit facilities and the ability to close out market positions. Due to
the dynamic nature of the underlying businesses, the Group aims at maintaining flexibility in funding
by keeping committed credit facilities available.
The table below analyses the maturity profile of the Group’s and Company’s financial liabilities
(including forward currency contracts) based on contractual undiscounted cash flows.
Less than
1 year
Between
1 and 5
years
Over
5 years
$’000
$’000
$’000
The Group
At 31 December 2014
Other financial liabilities
(2,102,547)
–
–
Borrowings
(2,538,874)
(2,602,556)
–
At 31 December 2013
Gross-settled currency forwards
- Receipts
126,081
–
–
- Payments
(125,906)
–
–
Other financial liabilities
(2,041,982)
–
–
Borrowings
(2,005,616)
(1,899,274)
(7,641)
The Company
At 31 December 2014
Other financial liabilities
(17,378)
–
–
At 31 December 2013
Other financial liabilities
(18,149)
–
–
(d)
Capital risk
The Group’s objectives when 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, obtain new borrowings or sell
assets to reduce borrowings.
Management monitors capital based on the return on shareholders’ fund. The return on shareholders’
fund was 1.5% per annum for the current financial year ended 31 December 2014 (2013: 2.3% per
annum).
The return on shareholders’ fund is calculated as net profit attributable to equity holders of the
Company divided by average shareholders’ equity.
The Group and the Company are in compliance with all externally imposed capital requirements for
the financial years ended 31 December 2014 and 31 December 2013.
