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Annual Report 2017
205
Notes to the
financial statements
31 march 2017
37. Financial risk management objectives and policies (cont’d.)
(d) Credit Risk
Credit risk, or the risk of counterparties defaulting, is controlled by the application of credit approvals, limits and monitoring
procedures. Credit risk is minimised and monitored via strictly limiting the Group’s associations to business partners
with high creditworthiness. Trade receivables are monitored on an ongoing basis via Group management reporting
procedures.
The Group does not have any significant exposure to any individual customer or counterparty except with the government
agencies as disclosed in Note 20. The Group does not have any major concentration of credit risk related to any financial
instruments.
38. Capital management
The primary objective of the Group’s capital management is to ensure that it maintains an optimal capital structure in order to
support its businesses and maximise shareholders’ value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain
or adjust the capital structure, the Group may adjust the dividend payment to shareholders. The Group’s approach in managing
capital is based on defined guidelines that are approved by the Board.
There were no changes in the Group’s approach to capital management during the year.