Annual Report 2011 - QuamIR

Management Discussion & AnalysisDuring the year ended 31 March 2011, theGroup has disposed of SP Gas to Mr. Leung at aconsideration of HK$13.3 million. The sole assetof SP Gas was the 95% equity interest of CNPC.The disposal was completed on 26 October 2010 asdetailed in note 39.At the end of the reporting period, the Companyhad no significant capital commitments.FOREIGN EXCHANGEEXPOSUREThe Group’s exposure to currency exchangerates is minimal as the group companies usuallyhold most of their financial assets/liabilities intheir own functional currencies.EMPLOYEES ANDREMUNERATION POLICIESAs at 31 March 2011, the Group employed 327 fulltimeemployees in the PRC and Hong Kong. TheGroup remunerated its employees based on theirperformance, qualifications, work experience andprevailing market salaries. Performance relatedbonuses are granted on a discretionary basis. Otheremployee benefits include mandatory providentfund, insurance and medical coverage, trainingprograms and share option scheme.Transactional currency exposures arise fromrevenue or cost of sales by operating unitsin currencies other than the unit’s functionalcurrency. Substantially all the Group’s revenueand cost of sales are denominated in thefunctional currency of the operating unitsmaking the revenue, and substantially all thecost of sales are denominated in the operatingunit’s functional currency. Accordingly, thedirectors consider that the Group is not exposedto significant foreign currency risk.The Group currently does not have a foreigncurrency hedging policy. However, themanagement monitors foreign exchangeexposure and will consider hedging significantforeign currency exposure should the need arise.Annual Report 201117