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LIPPO MALLS INDONESIA RETAIL TRUST
ANNUAL REPORT 2013
4. FOREIGN EXCHANGE RISK
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arising from foreign currency transactions and
balances as well as changes in the fair values from its
investment in Indonesia. The value of the Indonesian
Rupiah has been subject to fuctuations in the past
andmay be subjected to fuctuation in the future. The
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rates.
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based on LMIRTrust’s estimated quarterly distributions,
so as to provide a degree of certainty that changes in
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negative impact on the distributions in Singapore
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5. CREDIT RISK
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fulfll their contractual lease obligations. To minimize
the risk of tenant default on rental payment, the
Manager has put in place standard operating
procedures for debt collection and recovery of debts.
Other than the collection of security deposits, in the
form of cash or bankers guarantee, we also have a
monitoring system and a set of procedures on debt
collection.
6. LIQUIDITY RISK
The Manager actively monitors LMIR Trust’s cash fow
position so as to ensure sufcient liquid reserves
of cash and credit facilities to meet short term
obligations. In addition, the Manager also observes
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Investment Schemes issued by theMonetary Authority
of Singapore to govern limits on total borrowings.
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