Annual Report 2008 年報 - Irasia.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2008
39. FINANCIAL RISK MANAGEMENT
OBJECTIVES AND POLICIES
The Group’s major financial instruments include trade
receivables and other receivables, cash and bank
balances, trade and other payables, amounts due to
director, other loan and convertible loan notes. Details
of these financial instruments are disclosed in respective
notes. The risks associated with these financial
instruments and the policies on how to mitigate these
risks are set out below. The management manages
and monitors these exposures to ensure appropriate
measures are implemented on a timely and effective
manner.
(a) Credit risks
The Group’s maximum exposure to credit risk in
the event of the counterparties’ failure to perform
their obligations as at 31 December 2008 in
relation to each class of recognised financial
assets is the carrying amount of those assets as
stated in the consolidated balance sheet. The
Group manages its exposure to credit risk through
continual monitoring of the credit quality of its
customers, taking into account their financial
position, collection history, past experience and
other relevant factors. In addition, the Group
reviews regularly the recoverable amount of
each individual trade receivables to ensure
that adequate impairment losses are made for
irrecoverable amounts. In this regard, the directors
of the Company consider that the Group’s credit
risk is significantly reduced.
(b) Cash flow and fair value interest rate risk
As the Group has no significant interest-bearing
assets, the Group’s income and operating cash
flows are substantially independent of changes in
market interest rates.
The Group’s interest-rate risk arises from longterm
borrowings. The Group does not have policy
to maintain a specific level of its borrowings in
fixed rate instruments since the board accepts that
this neither protects the Group entirely from the
risk of paying rates in excess of current market
rates nor eliminates fully cash flow risk associated
with interest payments.
39.
(a)
(b)
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