NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
78
CITIC ENVIROTECH LTD.
Annual Report
2015
4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS
MANAGEMENT (cont’d)
(c)
Categories of financial instruments
The following table sets out the financial instruments as at the end of the reporting period:
Group
Company
December
31,
2015
$’000
March 31,
2015
$’000
December
31,
2015
$’000
March 31,
2015
$’000
Financial assets
Service concession receivables
509,161 389,590
–
–
Loans and receivables
281,234 266,481 732,231 471,839
Cash and bank balances
540,466 113,757 198,024
17,530
Financial guarantee contract
–
–
2,424
2,294
Total
1,330,861 769,828 932,679 491,663
Financial liabilities
Trade payables
149,623 121,653
–
–
Other payables
73,817
95,386
21,071
35,132
Bank loans
425,751 220,774
–
1,350
Finance leases
436
227
100
112
Convertible bonds
–
58,782
–
58,782
Medium term notes
319,926
98,228 319,926
98,228
Total
969,553 595,050 341,097 193,604
(d)
Financial risk management policies and objectives
Management of the Group monitors and manages the financial risks relating to the operations
of the Group to minimise adverse potential effects of financial performance. These risks
include market risk (including currency risk, interest rate risk and equity price risk), credit risk,
liquidity risk and cash flow interest rate risk.
(i)
Foreign exchange risk management
The principal entities in the Group transact businesses significantly in Renminbi (“RMB”),
which are also the functional currencies of its principal entities and therefore the
exposure to foreign currency risk is mainly due to United States Dollar (“US$”), Malaysia
Ringgit (“RM$”), Hong Kong Dollar (“HK$”) and Singapore Dollar (S$).
Management monitors the foreign exchange exposure and will consider any hedging
should the need arises.
