Sun Art Retail Group Limited - TodayIR.com

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22 CAPITAL, RESERVES AND DIVIDENDS (CONTINUED)
(f)
Capital risk management (continued)
The debt-to-equity ratios were as follows:
At 31 December
2012 2011
RMB million RMB million
Loans and borrowings (note 19) 402 199
Other financial liabilities (note 20) 85 85
487 284
Less: Time deposits (105) (67)
Cash and cash equivalents (5,757) (7,517)
Available-for-sale financial assets (1,965) –
Net asset (7,340) (7,300)
Total equity 17,358 15,517
Asset-to-equity ratio 42% 47%
Neither the Company nor any of its subsidiaries are subject to externally imposed capital
requirements.
23 FINANCIAL RISK MANAGEMENT AND FAIR VALUE
Financial assets of the Group include cash and cash equivalents, time deposits, available-for-sale
financial assets and trade and other receivables. Financial liabilities of the Group include loans
and borrowings and trade and other payables.
The Company’s board of directors (the “Board”) has overall responsibility for the establishment and
oversight of the Group’s risk management framework, and developing and monitoring the Group’s
risk management policies.
The Group’s risk management policies are established to identify and analyse the risks faced
by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to
limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities. The Group, through its training and management standards
and procedures, aims to develop a disciplined and constructive control environment in which all
employees understand their roles and obligations. The risks are mitigated by various measures
as disclosed below.
Sun Art Retail Group Limited
Annual Report 2012
99