China Communications Services Corporation Limited Annual Report 2015
150
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
40. FINANCIAL RISK MANAGEMENT AND FAIR VALUES
(continued)
(d) Currency risk
Foreign currency exchange rate risk arises on financial instruments that are denominated in a currency other than the
respective functional currencies of group entities. The Group’s foreign currency risk exposure relates to the bank
deposits and borrowings denominated primarily in United States dollars, Hong Kong dollars, Nigerian Naira, Saudi
Arabian Riyal and Ethiopian Birr. 92.2% (2014: 89.1%) of the Group’s cash and cash equivalents and 21.9% (2014:
4.7%) of the Group’s short-term debt and long-term debt as at 31 December 2015 are denominated in RMB.
The following table details the Group’s exposure at the end of the reporting period to currency risk arising from
recognised assets or liabilities denominated in a currency other than the functional currency of the entity to which
they related. For presentation purposes, the amounts of the exposure are shown in RMB, translated using the spot
rate at the year-end date.
Exposure to currency risk
Exposure to foreign currencies (expressed in RMB)
2015
United
States
dollars
Hong Kong
dollars
Nigerian
Naira
Saudi
Arabian
Riyal
Ethiopian
Birr
Others
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Cash and cash equivalents
450,005
27,211
44,158
35,378
12,133 175,905
Accounts receivable
425,604
34,594
28,829 197,545
45,233 332,287
Accounts payable
(260,798)
(9,163)
(24,234)
(116,817)
(53,036)
(127,598)
Short-term interest-bearing
borrowings
(126,603)
—
—
—
— (4,169)
Long-term interest-bearing
borrowings
(34,455)
—
—
—
—
—
Other non-current liabilities
(649,360)
—
—
—
—
—
Overall net exposure
(195,607)
52,642
48,753 116,106
4,330 376,425
Exposure to foreign currencies (expressed in RMB)
2014
United
States
dollars
Hong Kong
dollars
Nigerian
Naira
Saudi
Arabian
Riyal
Ethiopian
Birr
Others
RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000
Cash and cash equivalents
547,515
16,183
82,261
26,819
4,165 123,437
Accounts receivable
283,008
64,894
30,676 123,516
80,337 277,477
Accounts payable
(162,803)
(38,896)
(25,587)
(73,255)
(53,936)
(207,899)
Short-term interest-bearing
borrowings
(233,538)
—
—
—
—
—
Long-term interest-bearing
borrowings
(38,708)
—
—
—
—
—
Other non-current liabilities
(611,900)
—
—
—
—
—
Overall net exposure
(216,426)
42,181
87,350
77,080
30,566 193,015
