NOTES
TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2016
(In Singapore dollars)
120
ANNUAL REPORT 2015/2016
31. RELATED PARTY DISCLOSURE
(a)
Sale and purchase of goods and services
In addition to those related party information disclosed elsewhere in the financial statements, the following
significant transactions between the Company and related parties took place during the financial year on
terms agreed by the parties concerned:
Company
2016
$’000
2015
$’000
Subsidiaries
– Dividend income
2,294
9,578
– Consultancy and management fee income
2,774
3,089
– Rental income from investment properties
1,219
3,104
– Interest on loans
231
264
(b)
Compensation of key management personnel
Key management personnel are defined as persons who have authority and responsibility for planning,
directing and controlling the activities of the Group.
Details of their remuneration paid during the year have been disclosed in Note 5(a).
32. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group and the Company is exposed to financial risks arising from its operations and the use of financial
instruments. The Group’s principal financial instruments, other than quoted securities, comprise bank borrowings,
finance leases and cash and cash equivalents. All financial transactions with the banks are governed by banking
facilities duly accepted with Board of Directors (“Board”) resolutions, with banking mandates which define the
permitted financial instruments and facilities limits, approved by the Board. The Group has various other financial
assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.
The key financial risks faced by the Group include credit risk, foreign currency risk, liquidity risk and interest
rate risk. The Board reviews and agrees policies and procedures for the management of these risks, which are
executed by the key management personnel of the Group. The Audit Committee provides independent oversight
to the effectiveness of the risk management process. It is, and has been throughout the current and previous
financial year, the Group’s policy that no derivatives shall be undertaken except for the use as hedging instruments
where appropriate and cost-efficient. The Group does not apply hedge accounting, other than the hedge of net
investment in foreign operations as disclosed in Note 34.
The following sections provide details regarding the Group’s and Company’s exposure to the above-mentioned
financial risks and the objectives, policies and processes for the management of these risks.
