China Communications Services Corporation Limited Annual Report 2015
149
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES
(continued)
(a) Credit risk
(continued)
The credit risk on available-for-sale financial assets arises from loss in value through corporate failure. The Group
mitigate the credit risk on available-for-sale financial assets by closely monitor its portfolio and minimize investments
on these assets. The Group’s available-for-sale financial assets are less than 2% of its total assets for both 2015 and
2014.
The amounts of cash and cash equivalents, restricted deposits, accounts and bills receivable, other receivables and
available-for-sale financial assets in the consolidated statement of financial position after deducting impairment
allowance represent the Group’s maximum exposure to the credit risk in relation to financial assets.
(b) Interest rate risk
The Group is exposed to fair value interest rate risk primarily from its short-term and long-term debts carrying
interests at fixed rates. The Group manages its exposure to fair value interest rate risk by maintaining high proportion
of fixed rate debts with maturity within one year. Details of the interest rates are disclosed in note 32.
(c) Liquidity risk
Individual operating entities within the Group are responsible for their own cash management, including the short
term investment of cash surpluses and the raising of loans to cover expected cash demands, subject to approval by
the Company’s board when the borrowings exceed certain predetermined levels of authority. The Group’s policy is to
regularly monitor its liquidity requirements, to ensure that it maintains sufficient reserves of cash and readily realizable
marketable securities and adequate committed lines of funding from major financial institutions to meet its liquidity
requirements in the short and longer term.
The following tables show the remaining contractual maturities at the end of the reporting period of the Group’s
non-derivative financial liabilities, which are based on contractual undiscounted cash flows (including interest
payments computed using contractual rates or, if floating, based on interest rates at the end of the reporting period)
and the earliest date the Group can be required to pay:
2015
2014
Contractual
undiscounted
cash outflow
within 1 year
or on demand
Carrying
amount
Contractual
undiscounted
cash outflow
within 1 year
or on demand
Carrying
amount
RMB’000
RMB’000
RMB’000
RMB’000
Short-term interest-bearing borrowings
(note 32)
179,538
177,005
250,287
246,818
Account and bills payable (note 33)
19,699,385
19,699,385
18,815,568
18,815,568
Receipt in advance for contract work
2,911,542
2,911,542
1,578,088
1,578,088
Accrued expenses and other payables
(note 34)
8,691,602
8,691,602
7,424,966
7,424,966
31,482,067
31,479,534
28,068,909
28,065,440
