Annual Report - QuamIR
Annual Report - QuamIR
Annual Report - QuamIR
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Notes to the Consolidated Financial Statements (Continued)<br />
<br />
3 Financial risk management (Continued)<br />
3.1 Financial risk factors (Continued)<br />
(b) Credit risk (Continued)<br />
To manage the credit risk associated with trade and other<br />
receivables and deposits paid for a property development<br />
project, the Group adopts risk control to assess the credit<br />
quality of the customers and debtors, taking into account<br />
their financial positions and past experience.<br />
3 <br />
3.1 <br />
(b) <br />
<br />
<br />
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There is no concentration of credit risk with respect<br />
to trade receivables from third party customers as the<br />
customer bases are widely dispersed in different sectors<br />
and industries.<br />
<br />
<br />
<br />
In addition, the Group and the Company monitor the<br />
exposure to credit risk in respect of the financial assistance<br />
provided to subsidiaries, associated companies and jointly<br />
controlled entities through exercising control and significant<br />
influence over their financial and operating policy decisions<br />
and reviewing their financial positions on a regular basis.<br />
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<br />
<br />
(c)<br />
Liquidity risk<br />
Liquidity risk is the risk that the Group is unable to meet its<br />
current obligations when they fall due. The Group measures<br />
and monitors its liquidity through the maintenance of<br />
prudent ratios regarding the liquidity structure of the overall<br />
assets, liabilities, loans and commitments of the Group.<br />
The Group also maintains a conservative level of liquid<br />
assets to ensure the availability of sufficient cash flows to<br />
meet any unexpected and material cash requirements in<br />
the course of ordinary business.<br />
(c)<br />
<br />
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<br />
<br />
The table below analyses the Group’s and the Company’s<br />
<br />
contractual maturity for their financial liabilities. The<br />
<br />
amounts disclosed in the table have been drawn up with<br />
<br />
reference to the undiscounted cash flows of the financial<br />
<br />
liabilities based on the earliest date on which the Group<br />
<br />
and the Company can be required to pay.<br />
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