Disclosure and presentation

Derivative Financial Instruments 
The entity enters into forward foreign exchange contracts and interest rate swap 
agreements. 
The net amount receivable or payable under interest rate swap agreements is 
progressively recognized over the period to settlement. The amount recognized is 

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accounted for as an adjustment to interest and finance charges during the period and 
included in other debtors or other creditors at each reporting date. 
Note X2. Financial Risk Management
Financial Risk Factors 
The entity’s activities expose it to a variety of financial risks, including the effects 
of: changes in debt and equity market prices, foreign currency exchange rates and 
interest rates. The entity’s overall risk management program focuses on the 
unpredictability of financial markets and seeks to minimize potential adverse effects 
on the financial performance of the entity. The entity uses derivative financial 
instruments such as interest rate swaps and foreign exchange contracts to hedge 
certain exposures.
Risk management is carried out by a central treasury agency (Treasury Corporation) 
under policies approved by its Governing Board and consistent with the prudential 
guidelines set down by the Ministry for Finance. Treasury Corporation identifies, 
evaluates and hedges financial risks in close co-operation with the operating units. The 
Board provides written principles for overall risk management, as well as written policies 
covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of 
derivative financial instruments and investing excess liquidity. 
Interest Rate Risk 
The entity’s revenue and operating cash flows are substantially independent of 
changes in market interest rates. The entity has no significant interest-bearing assets. 
The entity’s policy is to maintain approximately 80% of its borrowings in fixed rate 
instruments. At the year end 75% were at fixed rates. The entity sometimes borrows 
at variable rates and uses interest rate swaps as cash flow hedges of future interest 
payments, which have the economic effect of converting borrowings from floating 
rates to fixed rates. The interest rate swaps allow the entity to raise long-term 
borrowings at floating rates and swap them into fixed rates that are lower than those 
available if it borrowed at fixed rates directly. Under the interest rate swaps, the 
entity agrees with other parties to exchange, at specified intervals (mainly quarterly), 
the difference between fixed contract rates and floating rate interest amounts 
calculated by reference to the agreed notional principal amounts. 
Credit Risk 
The entity has no significant concentrations of credit risk. Derivative counterparties 
and cash transactions are limited to high credit quality financial institutions. The 
entity has policies that limit the amount of credit exposure to any one financial 
institution.
Liquidity Risk 
Prudent liquidity risk management includes maintaining sufficient cash and marketable 
securities, the availability of funding through an adequate amount of committed credit 

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facilities and the ability to close out market positions. Treasury Corporation aims at 
maintaining flexibility in funding by keeping committed credit lines available.