79
(b) Financial risk management policies and objectives (Cont’d)
Matters pertaining to risk management strategies and execution require the decision and approval of the Board of
Directors (“the Board”).
The Board is regularly updated on the Group’s financial investments and hedging activities.
There has been no change to the Group’s exposure to these financial risks or the manner in which it manages and
measures the risk. Financial risk exposures are measured using sensitivity analysis indicated below.
(i) Foreign exchange risk management
The Group transacts its business in various foreign currencies, mainly the United States dollar, Hong Kong dollar,
Indonesian rupiah and Philippine peso and therefore is exposed to foreign exchange risk.
The currency risk of the Group arises mainly from the Group’s foreign currency denominated investments. In
addition, currency risk also arises from its operational purchases of goods for sales, consumables and capital
expenditure denominated in currencies other than the functional currency.
Where appropriate, the Group enters into foreign exchange forward contracts to hedge against its currency risk
resulting from anticipated transactions in foreign currencies and its foreign currency denominated investments.
No foreign exchange contracts are entered for speculative purposes.
At the end of the reporting period, the carrying amounts of significant monetary assets and monetary liabilities
denominated in currencies other than the respective Group entities’ functional currencies are as follows:
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL ASSETS MANAGEMENT (cont’d)
2013
2012
2013
2012
$’000
$’000
$’000
$’000
United States dollar
16,892 14,156
5,704
4,123
Hong Kong dollar
14,331 10,104
-
-
Indonesian rupiah
2,065
2,063
-
-
Philippine peso
836
1,928
-
-
Assets
Group and Co-operative
Liabilities
