121
ANNUAL REPORT 2015/2016
Notes to Financial Statements
32
FINANCIAL RISK MANAGEMENT (CONT’D)
(c)
-JRVJEJUZ SJTL (cont’d)
It is expected that all the liabilities will be paid at their contractual maturity except for bank
borrowings which are expected to be re-financed. In order to meet such cash commitments,
the operating activities are expected to generate sufficient cash inflows. In addition, the
GJOBODJBM BTTFUT BSF IFME GPS XIJDI UIFSF JT B MJRVJE NBSLFU BOE UIBU BSF SFBEJMZ BWBJMBCMF UP
NFFU MJRVJEJUZ OFFET &YDFQU GPS DBTI GMPXT BSJTJOH GSPN UIF JOUSB HSPVQ GJOBODJBM HVBSBOUFFT
it is not expected that the cash flows included in the maturity analysis above could occur at
significantly different amounts.
(d)
Credit risk
5IF DBSSZJOH BNPVOUT PG DBTI BOE DBTI FRVJWBMFOUT EFCU TFDVSJUJFT USBEF SFDFJWBCMFT BOE
other receivables represent the Group’s maximum exposure to credit risk in relation to financial
assets. Management has a credit policy in place and the exposure to credit risk is monitored on
BO POHPJOH CBTJT $SFEJU FWBMVBUJPOT BSF QFSGPSNFE PO BMM DVTUPNFST SFRVJSJOH DSFEJU
The Group has no significant concentration of credit risk, as the exposure is spread over a
large number of counterparties and customers. Information relating to the Group’s credit risk
exposure is disclosed in Note 15 of financial statements.
(e)
1SJDF SJTL
5IFSF BSF BSSBOHFNFOUT UP JOWFTU UFNQPSBSZ FYDFTT MJRVJEJUZ JO FRVJUZ PS EFCU TFDVSJUJFT
Investments in derivatives for speculative purposes are not considered. As at end of the year,
UIF RVPUFE FRVJUZ TFDVSJUJFT XFSF IFME FJUIFS BT JOWFTUNFOUT IFME GPS USBEJOH BU GBJS WBMVF
through profit or loss or available-for-sale investments. As a result, such investments are
exposed to both currency risk and changes in fair value risk.
No sensitivity analysis was performed as management is of the view that the effect on profit
before tax is not significant.
