Page 176 - ar2012

17. Financial risk management objectives and policies (continued)
(b) Credit risk (continued)
The maximum exposure to credit risk is represented by the carrying amount of that class of fnancial instruments
presented on the balance sheet.
(i) Financial assets that are neither past due nor impaired
Trade receivables that are neither past due nor impaired are receivables from a-iTrust which represent
the Company’s maximum exposure to credit risk. a-iTrust has relatively healthy fnancial position and
management does not expect the company to fail to meet its obligations.
(ii) Financial assets that are past due and/or impaired
There are no fnancial assets that are either past due and/or impaired.
(c) Liquidity risk
Excess cash in the Company will be transferred to the intermediate holding company for effcient cash management.
To meet payment obligations in a timely manner, the intermediate holding company makes fund transfers back to
the Company as and when the need arises.
The Company’s fnancial assets and liabilities based on contractual undiscounted cash fows approximate their
carrying amounts on the balance sheet and, are due within 1 year from the balance sheet date.
(d) Capital risk
The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern and to maintain an optimal capital structure so as to maximise shareholder value. In order to maintain or
achieve an optimal capital structure, the Company may adjust the amount of dividend payment, return capital to
shareholder, issue new shares, obtain new borrowings or sell assets to reduce borrowings.
Management monitors capital based on the debt equity ratio, which is calculated as total external borrowings
divided by total equity. As at balance sheet date, the Company does not have any external borrowings.
Notes to the fnancial statements
For the fnancial year ended 31 March 2012
174 POSITIONED FOR GROWTH