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118 Annual Report 2012
3.3 Credit risk
The Group has no significant concentrations of credit risk. The Group has appropriate policies in place to ensure that
Group sell products and provide services to customers who have appropriate credit history.
3.4 Liquidity risk
The Group has significant exposure to liquidity risk as the Group has sufficient cash to support its operations. The Group aims
on maintaining flexibility of funding by using internal capital of the Group.
3.5 Risk from investments and deposits
The Group is exposed to market risks as the investor of financial instruments, and credit risk from the issuer of financial
instruments. The Group, therefore, has a policy of diversifying its investments and deposits to high credit financial institutions according
to the investment policy prescribed by the resolution of the investment committee.
The investment policies framework regarding types and proportion of investments are as follows:
1) Investments in debt securities
Type of investment Proportion of total investment
Government securities, debentures or bonds of state enterprises
or entities incorporated by specific laws and
guaranteed by the Ministry of Finance
Unlimited
Fixed deposits or NCDs at commercial banks and promissory notes
of finance companies or financial institutions
incorporated by specific laws
Not to exceed 15% per institution
Debentures or warrants of debentures and bills of exchange Not to exceed 5% per issuer
Investment units or warrants of investment units in mutual funds
invested in debt securities
Not to exceed 10% per mutual fund
2) Investments in equity securities
Type of investment Proportion of total investment
Investment units or warrants of investment units in mutual funds
invested in equity securities
Not to exceed 10% per mutual fund
3) Investments in property funds
Type of investment Proportion of total investment
Property funds Not to exceed 10% of project value, and
amount not to exceed 2% of total
investments
4) Investments in foreign investment funds
Type of investment Proportion of total investment
Foreign investment funds Not to exceed 3% of total investments
Investments in each asset management company should not exceed 40% of total investments.