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EC World Real Estate Investment Trust ANNUAL REPORT 2016
NOTES TO THE
Financial Statements
For the Financial Year ended 31 December 2016
23. Financial risk management (continued)
(c) Liquidity risk
The Group adopts prudent liquidity risk management by maintaining sufficient cash to fund its working
capital and financial obligations. At the end of each reporting period, assets held by the Group for managing
liquidity risk included cash and short-term deposits. In addition, the Manager also monitors and observes
the Code on Collective Investment Schemes issued by the Monetary Authority of Singapore (the “CIS Code”)
concerning the leverage limits and financial covenants imposed by the banks on the various borrowings.
The table below analyses financial liabilities (including derivative financial liabilities) of the Group and ECW
into relevant maturity groupings based on the remaining period from the reporting date to the contractual
maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances
due within 12 months approximates their carrying amounts as the impact of discounting is not significant.
Contractual
cash flows
Within
1 year
Within
2 to 3 years
More than
3 years
S$’000
S$’000
S$’000
S$’000
Group
2016
Non-derivative financial liabilities
Borrowings
(453,499)
(19,445)
(434,054)
–
Trade and other payables*
(83,575)
(20,798)
(62,777)
–
Derivative financial liabilities
Interest rate swaps^
(2,113)
(818)
(1,295)
–
2015
Non-derivative financial liabilities
Borrowings
(360,301)
(18,069)
(49,132)
(293,100)
Trade and other payables*
(403,595)
(403,595)
–
–
Contractual
cash flows
Within
1 year
Within
2 to 3 years
More than
3 years
S$’000
S$’000
S$’000
S$’000
ECW
2016
Non-derivative financial liabilities
Borrowings
(216,364)
(6,334)
(210,030)
–
Trade and other payables*
(3,578)
(3,578)
–
–
Derivative financial liabilities
Interest rate swaps^
(2,113)
(818)
(1,295)
–
2015
Non-derivative financial liabilities
Borrowings
–
–
–
–
Trade and other payables*
–
–
–
–
* Exclude deferred income and rental received in advance.
^ For the purpose of the contractual cash flows calculation, SOR of 0.66717% and 1-to-5 year PBOC Lending Base Rate of 4.75% were
being used.