Bahri Annual Report-2014

B- The following schedule illustrates the distribution of the Group’s assets and liabilities per operating segments as of December 31:

2014

Oil transportation

Petrochemicals transportation

General cargo transportation

Dry bulk transportation

Shared assets and liabilities*

Total

Assets

10,180,032 3,393,587 1,784,598 4,768,574 2,065,533 1,210,729

696,520 1,067,793 17,122,530

Liabilities

434,818

457,607 8,937,261

2013

Oil transportation

Petrochemicals transportation

General cargo transportation

Dry bulk trans- portation

Shared assets and liabilities*

Total

Assets

5,273,014 3,516,252 1,730,364 1,652,778 2,263,322 1,224,998

412,784 1,090,299 12,022,713

Liabilities 510,122 5,835,290 * Shared assets and liabilities represent amounts that cannot be allocated to a specific segment such as cash on hand, deposits, investments held to maturity, unclaimed dividends, and etc... 184,070

25- Financial instruments and risk management The Group’s activities expose to a variety of financial risks: market risk (including currency risk, fair value risk, and cash flow commission rate exposure and price risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Financial instruments carried on the balance sheet principally include cash and cash equivalents, investments, receivables, financing, payables, certain accrued expenses and derivative financial instruments. Financial assets and liabilities are offset and net amounts are reported in the consolidated financial statements when the Group has a legally enforceable right to set off the recognized amounts and intends either to settle on a net basis, or to realize the asset and liability simultaneously. Commission rate risks Commission rate risk is the risk that the value of financial instruments will fluctuate due to changes in the market commis- sion rates. The Group is subject to commission rate risk on its commission rate bearing assets and liabilities, including bank deposits and loans. The Group manages its exposure to commission rate risk by continuously monitoring movements in com- mission rates. Credit risks Credit risk is the risk that one party will fail to discharge an obligation and will cause the other party to incur a financial loss. The Group seeks to manage its credit risk with respect to banks by only dealing with reputable banks and with respect to customers by setting credit limits for individual customers, monitoring outstanding receivables and ensuring close follow-ups. Risk management is carried out by senior management. The most important types of risk are as follows:

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Annual Report 2014

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