SALADA AGAIN - Salada Foods Jamaica Ltd. has the reputation...

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Salada Foods Jamaica Ltd. has the reputation for producing superior quality products for the export markets throughout the Caribbean, North America and European countries. It is the largest of four coffee processing plants in Jamaica and the only soluble coffee processing plant in the entire Caribbean. Salada Foods Jamaica Limited maintains an intensive quality assurance operation and is committed to an ongoing program of research and development. The company offers a diverse range of premium products that meet the expectations of its consumers and its distributors are guaranteed advertising, promotional and marketing support tailored to meet the needs and characteristics of their market. Risks Faced By Salada The company has exposure to the following risks from its use of financial instruments: • Credit risk • Liquidity risk • Market risk • Operational risk The responsibility of establishing and overseeing the group’s risk management framework lies with the Board of Directors and its senior managers. The group has established risk management policies to identify and analyse the risks faced by the company and the subsidiaries to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Salada’s risk management policies and systems are frequently reviewed to reflect changes in market conditions and the group’s activities.
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(i) Credit risk: Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Credit risk arises principally from the receivables arising from credit given to customers and deposits with financial institutions. Cash and cash equivalents Cash and cash equivalents are maintained with substantial counter-parties deemed to have low risk of default. Trade receivables The group generally does not require collateral in respect of non-cash financial assets. The group’s exposure to credit risk is influenced mainly by the individual characteristic of each customer. Management has a credit policy in place to minimise exposure to credit risk. Credit evaluations are performed on all customers requiring credit. Management establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables. Management’s policy is to provide for balances based on past default experience, current economic conditions and expected recovery. (ii) Liquidity risk: Liquidity risk is the risk that the group will not meet its financial obligations as they fall due. The group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liability when due, under both normal and stressed
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SALADA AGAIN - Salada Foods Jamaica Ltd. has the reputation...

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