136
137
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
28. Related party transactions (cont’d)
(b)
Compensation of keymanagement personnel
Group
2012
2011
$
$
Short-term employee benefits
5,257,065
3,751,146
Comprise amounts paid/payable to
- Directors of theCompany
3,176,710
1,659,225
- Other keymanagement personnel
2,080,355
2,091,921
5,257,065
3,751,146
29. Directors’ and executives’ remuneration
Directors’ remuneration (including directors of subsidiaries) and fees amounted to $3,014,210 (2011:
$1,496,725) and $162,500 (2011: $162,500) respectively.
Thenumber ofDirectorsof theCompanywith remuneration received from theCompanyandall of its subsidiaries
fall within the following bands:-
Company
2012
2011
$1,250,000 to $1,499,999
2
–
$1,000,000 to $1,249,999
–
1
$250,000 to $499,999
–
1
Below $250,000
4
4
Total
6
6
30. Financial riskmanagementobjectivesand policies
TheGroup and the Company are exposed to financial risks arising from its operations and the use of financial
instruments. The key financial risks include interest rate risk, liquidity risk, credit risk and foreign currency
risk. The Group does not speculate in the currency markets or hold or issue derivatives financial instruments.
The Board reviews and agrees policies and procedures for the management of these risks. The AC provides
independent oversight to the effectiveness of the riskmanagement process.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Company’s financial
instruments will fluctuate because of changes inmarket interest rates.
TheGroup’s and theCompany’s exposure tomovements inmarket interest rates relates primarily to its short term
deposits.
TheGroup’s policy is to place excess funds with short-term tenure in order tomaintain a high level of liquidity.
Liquidity risk
Liquidity risk is the risk that theGroup or the Company will encounter difficulty inmeeting financial obligations
due to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from
mismatches of the maturities of financial assets and liabilities. The Group’s and the Company’s objective is to
maintain sufficient level of cash and short-term deposits tomeet its working capital requirements.
Analysis of financial instruments by remaining contractual maturities
The tablebelow summarises thematurityprofileof theGroup’s and theCompany’s financial assets and liabilities
at the end of the reporting period based on contractual undiscounted repayment obligations.
for the financial year ended 31december 2012
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
