Baker Technology LimitedAnnual Report 2014
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27.
Financial riskmanagement objectives andpolicies
The Group 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. TheGroup does not speculate in the currencymarkets or hold or issue derivatives financial
instruments. TheBoard reviewsandagreespoliciesandprocedures for themanagementof these risks. The
ACprovides independent oversight to theeffectiveness of the riskmanagement process.
Therehasbeennochange to theGroup’sexposure to thesefinancial risksor themanner inwhich itmanages
andmeasures the risks for financial year 2014.
Interest rate risk
Interest rate risk is the risk that the fair valueor futurecashflowsof theGroup’sand theCompany’sfinancial
instrumentswill fluctuatebecauseof changes inmarket interest rates.
TheGroup’s and the Company’s exposure tomovements inmarket interest rates relates primarily to its
short termdeposits.
The Group’s policy is to place excess funds with short-term tenure in order to maintain a high level of
liquidity. TheGrouphasminimal interest rate risk henceno sensitivity analysis is prepared.
Liquidity risk
Liquidityrisk istheriskthattheGrouportheCompanywillencounterdifficulty inmeetingfinancialobligations
due to shortage of funds. TheGroup’s and theCompany’s exposure to liquidity risk arises primarily from
mismatches of thematurities of financial assets and liabilities. TheGroup’s and theCompany’s objective is
tomaintain sufficient level of cash and short-termdeposits tomeet itsworking capital requirements.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
