Directors' Report - Alibaba

37 FINANCIAL RISK MANAGEMENT (Continued)
(c) Credit risk
The Group’s credit risk is considered minimal as a substantial part of the income is prepaid by a diversified group of
customers. The extent of the Group’s credit risk exposure is represented by the aggregate of cash and other investments
held at banks and at other financial institutions. All of the Group’s cash and other investments are placed with financial
institutions of sound credit quality and most of which bears maximum original maturities of less than 12 months.
The Group’s maximum exposure to credit risk is represented by the carrying amount of each financial asset in the
consolidated balance sheet.
(d) Liquidity risk
The Group has maintained its own treasury function, which reports to the Group’s Chief Financial Officer, to monitor the
current and expected liquidity requirements and aims to maintain flexibility by keeping sufficient cash and available bank
facilities to meet its commitment over the foreseeable future in accordance with its strategic plans.
The following tables detail the remaining contractual maturities at the end of the reporting period of the Group’s nonderivate
financial liabilities which are based on contractual undiscounted principal cash flows and the earliest date on which
the Group is required to pay.
More than 1 year More than 2 years
Carrying within 1 year but not but not
amount or on demand exceeding 2 years exceeding 5 years
RMB’000 RMB’000 RMB’000 RMB’000
The Group
As of December 31, 2010
Trade payables 15,981 15,981 – –
Amounts due to customers 220,612 220,612 – –
Amounts due to related companies 45,967 45,967 – –
Other payables and accruals 912,927 859,261 27,544 26,122
Dividend payable 943,695 943,695 – –
Short-term bank borrowings 92,718 92,718 – –
Total 2,231,900 2,178,234 27,544 26,122
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Alibaba.com Limited Annual Report 2010