ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
16.
Derivative financial instruments
Group and Trust
2015
2014
Contract/
Notional
Amount
Fair Values
Contract/
Notional
Amount
Fair Values
Assets
Liabilities
Assets
Liabilities
$'000
$'000
$'000
$'000
$'000
$'000
Current
Cash flow hedges
– Interest rate swaps
49,000
130
(54)
27,500
–
(51)
– Currency swaps
41,000
1,714
–
22,500
3,928
–
Non-hedging instruments
– Currency forwards
16,600
6
(659)
16,800
–
(916)
1,850
(713)
3,928
(967)
Non-current
Cash flow hedges
– Interest rate swaps
6,000
9
–
34,000
–
(463)
– Currency swaps
170,500
5,884
(4,662)
130,000
14,220
(1,736)
5,893
(4,662)
14,220
(2,199)
Total
7,743
(5,375)
18,148
(3,166)
No cash flow hedges of expected transactions were assessed to be ineffective under FRS 39 and recognised in the profit or
loss accounts for the Group and the Trust for the years ended 31 March 2015 and 2014.
The Group held interest rate swaps to exchange floating-rate interest, on SGD loans of $55,000,000 (2014: $61,500,000),
into fixed-rate interest at an average rate of 3.53% (2014: 3.43%) per annum.
The Group entered into currency swaps to exchange floating-rate SGD loans of $120,000,000 (2014: $83,500,000) for
INR obligations at average fixed-rate of 7.75% (2014: 8.30%) per annum and also currency swaps to exchange fixed-rate
medium term notes of $91,500,000 (2014: $69,000,000) for fixed-rate INR obligation at average fixed-rate of 8.67%
(2014: 9.08%) per annum.
The rationale for entering into currency forwards is disclosed in Note 27(a)(i).
Period when cash flows on cash flow hedges are expected to occur or affect profit or loss
Currency and interest rate swaps are entered to hedge currency and interest rate fluctuations. Fair value gains and losses on
the currency and interest rate swaps recognised in the hedging reserve are transferred to profit or loss as realised fair value
gain or loss on derivative financial instruments upon maturity. Net interest paid on the currency and interest rate swaps is
taken to profit or loss as part of interest expense over the period of borrowings.
