Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.

NOTES TO THE FINANCIAL STATEMENTS
32. FINANCIAL RISK MANAGEMENT (CONTINUED)
32.2 Market risk (continued)
a) Foreign exchange risk
The Bank operates in Cambodia and transacts in many currencies, and is exposed to various currency risks,
primarily with respect to Khmer Riel, Euro and Thai Baht.
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the Bank's functional currency.
The management monitors their foreign exchange risk against functional currencies. However, the Bank
does not hedge their foreign exchange risk exposure arising from future commercial transactions and
recognised assets and liabilities using forward contracts.
The table below summarises the Bank's exposure to foreign currency exchange rate risk at 31 December
2008. Included in the table are the Bank's financial instruments at carrying amount by currency in US$
equivalent.
US$ Riel EUR THB Gold Other TOTAL
As at 31 December 2008
Assets
Cash on hand 38,451,843 3,010,754 37,248 1,272,133 9,500 44,336 42,825,814
Balances with the Central Bank 69,570,268 2,475,988 - - - - 72,046,256
Balances with other banks 26,845,316 6,031 802,514 - - 1,131,159 28,785,020
Loans and advances 389,074,202 188,650 - 1,339,346 - - 390,602,198
Other assets 2,567,673 - 10,709 - - 17,263 2,595,645
Total financial assets 526,509,302 5,681,423 850,471 2,611,479 9,500 1,192,758 536,854,933
Liabilities
Deposits from banks 25,776,303 1,678 - - - - 25,777,981
Due to customers 428,871,178 5,986,901 - 1,487,233 16,697 - 436,362,009
Other liabilities 6,314,509 66,526 - 18,417 - - 6,399,452
Borrowings 7,057,279 - - - - - 7,057,279
Subordinated debt 7,080,000 - - - - - 7,080,000
Total financial liabilities 475,099,269 6,055,105 - 1,505,650 16,697 - 482,676,721
Net Balance Sheet Position 51,410,033 (373,682) 850,471 1,105,829 (7,197) 1,192,758 54,178,212
In million Riel equivalent
(unaudited) 209,804 (1,525) 3,471 4,513 (29) 4,867 221,101
Credit commitments 32,710,538 55,813 83,534 223,438 - - 33,073,323
Annual Report 2008 63