Singapore Airlines 2016 Annual Report Download - page 208

Notes to the Financial Statements
31 March 2016
38 Financial Risk Management Objectives and Policies (in $ million) (continued)
(e) Liquidity risk (continued)
31 March 2015
Within
1 year
1 - 2
years
2 - 3
years
3 - 4
years
4 - 5
years
More than
5 years Total
The Group
Notes payable 337.0 33.6 33.6 33.6 33.6 1,056.2 1,527.6
Loans 101.0 38.0 38.9 38.9 40.5 109.5 366.8
Finance lease commitments 57.8 24.3 24.0 – – – 106.1
Maintenance reserve – – – – – 1.0 1.0
Purchase option payable to lessor – 51.7 34.5 – – – 86.2
Trade and other creditors 2,906.5 – – – – – 2,906.5
Derivative financial instruments:
Currency hedging contracts 37.8 – – – – – 37.8
Fuel hedging contracts 823.6 151.2 – – – – 974.8
Cross currency swap contracts 6.9 – – – – – 6.9
Interest rate swap contracts 0.5 – – – – – 0.5
4,271.1 298.8 131.0 72.5 74.1 1,166.7 6,014.2
The Company
Notes payable 337.0 33.6 33.6 33.6 33.6 1,056.2 1,527.6
Maintenance reserve – – – – – 1.0 1.0
Trade and other creditors 2,088.6 – – – – – 2,088.6
Amounts owing to subsidiary companies 1,048.7 – – – – – 1,048.7
Derivative financial instruments:
Currency hedging contracts 37.8 – – – – – 37.8
Fuel hedging contracts 793.2 151.2 – – – – 944.4
4,305.3 184.8 33.6 33.6 33.6 1,057.2 5,648.1
(f) Credit risk
The Group has an independent Group Debts Review Committee to review the follow up actions on outstanding receivables monthly. On
a day-to-day basis, the respective Finance divisions have the primary responsibility for measuring and managing specific risk exposures.
The maximum exposure to credit risk for the Group and the Company is represented by the carrying amount of each financial asset in
the statement of financial position.
There are no significant concentrations of credit risk other than on derivative counterparties where transactions are limited to financial
institutions possessing high credit quality and hence the risk of default is low.
The sale of passenger and cargo transportation is largely achieved through IATA accredited sales agents. The credit risk of such sales
agents is relatively small owing to a broad diversification. In specific instances, the contract may require special collateral.
Unless expressly stated otherwise in the contract, receivables and payables among airlines are settled either bilaterally or via the IATA
Clearing House. Receivables and payables are generally netted and settled at weekly intervals, which lead to a clear reduction in the risk
of default.
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