BiotechCorp Annual Report 2007 - Malaysian Biotechnology ...

15. Capital commitments
2007 2006
RM RM
Approved and contracted for:
Property, plant and equipment 883,928 -
Patent and licences 12,200,000 -
16. Financial instruments
Financial risk management objectives and policies
13,083,928 -
Exposure to credit, liquidity and foreign currency risk arises in the normal course of the Company’s business. The Board of
Directors reviews and agrees policies for managing these risks and the risks are summarised as below:
Credit risk
The Company’s exposure to credit risk arises through its other receivables. At balance sheet date, there was no significant
exposure of credit risk. The maximum exposure to credit risk is represented by the carrying amount of the other receivables
presented in the balance sheet.
Liquidity risk
The Company monitors and maintains a level of cash and cash equivalents deemed adequate by management to finance
the Company’s operations and to mitigate the effects of fluctuations in cash flows.
Foreign currency risk
The Company incurs foreign currency risk on expenses that are denominated in a currency other than Ringgit Malaysia.
The currencies giving rise to this risk are primarily US Dollars, GBP and EUR and are restricted to operational transactions.
Hence, foreign currency risk is minimal.
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