Interim Report 2012 - TodayIR.com

Notes to Financial Statements30 June 201236. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)Credit riskThe Group trades with a large number of diversified customers and trading terms are mainly on cash and credit card settlement,hence, there is no significant concentration of credit risk.The credit risk of the Group’s other financial assets, which comprise cash and cash equivalents, other receivables, deposits andprepayments and long-term rental deposits included in the consolidated financial statements arise from default of counterparty with amaximum exposure equal to the carrying amounts of these instruments.As at 31 December 2011 and 30 June 2012, all bank deposits and cash and cash equivalents were deposited in high quality financialinstitutions without significant credit risk.Liquidity riskThe Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans. As at 31December 2011 and 30 June 2012, the Group had bank loans of RMB129,571,000 and RMB129,637,000, respectively which aremature within 12 months. The Directors review the Group’s working capital and capital expenditure requirements and consider theliquidity risk is manageable.The maturity profile of the Group’s financial liabilities as at the end of the reporting period, based on the contractual undiscountedpayments, is as follows:Group30 June 2012Less than 3 to 12 1 to 5On demand 3 months months years TotalRMB’000 RMB’000 RMB’000 RMB’000 RMB’000Interest-bearing bank loans 74,647 58,357 133,004Trade payables 5,549 95,720 101,269Financial liabilities included in other payablesand accruals 108,917 108,917Long-term payables 34,941 34,941114,466 170,367 58,357 34,941 378,13182XIAO NAN GUO RESTAURANTS HOLDINGS LIMITED