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ANNUAL REPORT FY13/14 189
NOTESTOTHE FINANCIAL STATEMENTS
Year ended 31 March 2014
31 FINANCIAL RISK MANAGEMENT (continued)
Currency risk
As at 31 March 2014, the Group’s exposure to fuctuations in foreign currency rates relates primarily to its JPY24.6 billion Series 003
Notes, Series 005 Notes and Series 006 Notes (2013: JPY19.6 billion Series 003 Notes and Series 005 Notes). The Group uses CCS
to manage its foreign currency risk. In relation to foreign currency risk arising from Series 003 Notes, Series 005 Notes and Series 006
Notes (2013: Series 003 Notes and Series 005 Notes), the Group had concurrently entered into CCS of notional amount JPY24.6 billion
(2013: JPY19.6 billion), whereby $364.4 million (2013: $302.1 million) payable will be swapped into JPY24.6 billion (2013: JPY19.6
billion) payable at maturity of the CCS.
Exposure to currency risk
As at 31 March 2014, the Group’s Singapore dollars equivalent exposure to foreign currency risk arising from Japanese Yen are as
follows:
Carrying
amount
Group and Trust $’000
2014
Medium term notes 300,027
Cross currency swaps 57,615
357,642
2013
Medium term notes 257,184
Cross currency swaps 43,147
300,331
Sensitivity analysis
A 5% (2013: 1%) strengthening of Singapore dollars against Japanese Yen at reporting date would increase/(decrease) total return
(before any tax efects) by the amounts shown in the table below. This analysis assumes that all other variables, in particular interest
rates, remain constant.
Increase/
(decrease) in
total return
Group and Trust $’000
2014
Medium term notes 15,055
Cross currency swaps (17,226)
(2,171)
2013
Medium term notes 2,583
Cross currency swaps (4,721)
(2,138)
A 5% (2013: 1%) weakening of Singapore dollars against Japanese Yen would have had the equal but opposite efect on the amounts
shown above, on the basis that all other variables remain constant.