NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
84
CITIC ENVIROTECH LTD.
Annual Report
2015
4 FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS
MANAGEMENT (cont’d)
(d)
Financial risk management policies and objectives (cont’d)
(iv) Liquidity risk management (cont’d)
Non-derivative financial assets
All non-derivative financial assets of the Group and the Company are on demand or
due within 1 year except for the Group’s trade receivables amounting to $4,687,000
(March 31, 2015 : $11,677,000) and the Group’s service concession receivables
amounting to $504,819,000 (March 31, 2015 : $384,814,000) as further disclosed in
Notes 7 and 8 respectively.
The maximum amount that the Company could be forced to settle under the corporate
guarantee contract in Note 38, if the full guaranteed amount is claimed by the
counterparty to the guarantee, is US$15,000,000 (March 31, 2015 : US$15,000,000).
The earliest period that the guarantee could be called is within 1 year (March 31,
2015 : 1 year) from the end of the reporting period. As mentioned in Note 4(d)(iii), the
Company consider that it is more likely than not that no amount will be payable under
the arrangement.
(v)
Fair value of financial assets and financial liabilities
The Group determines fair values of various financial assets and financial liabilities in the
following manner:
Fair value of the Group’s financial assets and financial liabilities that are measured at
fair value on a recurring basis.
None of the Group’s financial assets and financial liabilities are measured at fair value at
the end of each reporting period.
Fair value of the Group’s financial assets and financial liabilities that are not
measured at fair value on a recurring basis (but fair value disclosures are required)
Other than medium term notes, which is disclosed in Note 24 in the financial statements,
management considers that the carrying amounts of financial assets and financial
liabilities of the Group and the Company recorded at amortised cost in the financial
statements approximate their fair values.
