directors - The Lion Group

(iv) Liquidity risk
The Group practises prudent liquidity risk management to minimise the mismatch of financial assets and
liabilities and to maintain sufficient credit facilities for contingent funding requirement of working capital.
(v) Cash flow risk
Fair Values
The Group reviews its cash flow position regularly to manage its exposure to fluctuations in future cash
flows associated with its monetary financial instruments.
The fair values of short-term financial assets and financial liabilities reported in the balance sheet approximate
their carrying amounts because of the immediate or short-term maturity of these financial instruments.
The fair values of long-term financial assets (except for other investments - unquoted) and financial liabilities are
determined based on market conditions or by discounting the relevant cash flows using the current interest rates
for similar instruments at balance sheet date. There is no material difference between the fair values and carrying
values of these assets and liabilities as of the balance sheet date except for the quoted shares, which quoted
market prices are used to determine the fair value:
The Group The Company
Carrying Fair Carrying Fair
Value Value Value Value
RM’000 RM’000 RM’000 RM’000
2005
Long-term investments:
- quoted shares 22,938 13,163 15,095 7,219
2004
Long-term investments:
- quoted shares 125,648 30,485 19,095 8,050
The Directors are of the opinion that the excess carrying values of the quoted shares over their fair values at the
balance sheet date is temporary in nature as the underlying adjusted net assets of these companies are above their
market prices.
No disclosure is made for other investments - unquoted as it is not practicable to determine the fair values of these
investments because of the lack of quoted market prices and the assumptions used in valuation models to value
these investments cannot be reasonably determined.
No disclosure is made for balances with related companies and related parties as it is impractical to determine
their fair values with sufficient reliability given these balances have no fixed terms of repayment.
100