notes to the financial statements - Investor Relations

CWT Limited
126
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
42 FINANCIAL RISK MANAGEMENT (CONT’D)
Profit before tax
100 bp 100 bp
increase decrease
Group $’000 $’000
2011
Variable rate bank loans (1,371) 1,371
2010
Variable rate bank loans (63) 63
Foreign exchange risk
The Group operates internationally and is exposed to foreign currency risks arising from various currency exposures. Where
possible, the Group seeks to minimise its foreign currency exposure in operations by matching its exposure to foreign
currency receivables to its exposure to foreign currency payables. The Group may also explore using derivatives to hedge its
foreign exchange risk.
The Group seeks to minimise its foreign currency exposures in foreign subsidiaries, associates and jointly-controlled entities
by repatriating their earnings, where practicable. The Group also requires the foreign subsidiaries, associates and jointlycontrolled
entities to maintain their borrowings in the relevant foreign currencies which match their respective functional
currencies.
In respect of the other monetary assets and liabilities held in currencies other than the functional currencies, the Group
reviews the balances periodically to ensure the net exposure is kept at an acceptable level.
The Group’s and Company’s significant exposures to foreign currencies are as follows:
Group
US
dollar
Singapore
dollar Euro
Chinese
Yuan
Thai
Baht
$’000 $’000 $’000 $’000 $’000
2011
Long-term loan receivables 1,296 – 118 – –
Trade and other receivables 22,224 5,074 5,542 5,790 29
Cash and cash equivalents 9,788 2,373 1,331 165 –
Trade and other payables (11,853) (2,792) (1,756) (6,816) (1,009)
Financial liabilities (3,477) (461) – – –
17,978 4,194 5,235 (861) (980)
2010
Trade and other receivables 12,459 3,776 2,948 2,678 –
Cash and cash equivalents 9,346 1,566 182 – –
Trade and other payables (8,713) (311) (326) (2,161) (16)
Financial liabilities – (23) (48) – –
13,092 5,008 2,756 517 (16)