PSA International Pte Ltd Annual Report 2010
N otes to the Financial Statements
Year ended 31 December 2010
Foreign currency translation reserve
Fair value reserve
The Group defines capital as share capital and all components of equity. The Group’s primary objectives when managing capital are to safeguard the Group’s ability to continue to provide returns for shareholders and to support the Group’s stability and growth. The Group regularly reviews and manages its capital structure to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions.
There were no changes to the Group’s approach to capital management during the year.
Certain subsidiaries within the Group are subject to externally imposed capital requirements as required by law. These subsidiaries have complied with the requirements during the financial year. The Company and rest of its subsidiaries are not subject to any externally imposed capital requirements.
The capital reserve comprises:
statutory reserve of foreign jointly-controlled entities set aside as required under local laws; and
the Group’s share of capital reserve of associates.
The insurance reserve relates to a sum transferred from the former Port of Singapore Authority to PSA Corporation Limited in 1997 as part of the vesting of property, rights and liabilities. This reserve is to cover potential past liabilities and for funding future potential liabilities in relation to the port related activities undertaken by PSA Corporation Limited.