Notes to Consolidated Financial Statements  Year ended December 31, 2011  4. Financial risk management (continued):  Liquidity Risk Market Risk 32  2011 Annual Report  Alaris Royalty Corp. Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates  and equity prices will affect the Corporation’s income or the value of its holdings of financial  instruments. The objective of market risk management is to manage and control market risk  exposures within acceptable parameters, while optimizing the return. All such transactions are  carried out within the guidelines set by the Risk Management Committee.  Typically the Corporation ensures that it has sufficient cash on hand to meet expected operational  expenses for a period of 30 days, including the servicing of financial obligations; this excludes the  potential impact of extreme circumstances that cannot reasonably be predicted. In addition, the Corporation maintains a $30.1 million, 364 day revolving credit facility, and has $6.5 million balance  drawn at December 31, 2011 ($29.2 million at December 31, 2010). The Corporation has the  following financial instruments that mature as follows:  Liquidity risk is the risk that the Corporation will encounter difficulty in meeting the obligations  associated with its financial liabilities that are settled by delivering cash or another financial asset.  The Corporation’s approach to managing liquidity is to ensure, as far as possible, that it will always  have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,  without incurring unacceptable losses or risking damage to the Corporation’s reputation.  The carrying amount of investments, accounts receivable and cash and cash equivalents represents  the maximum credit exposure. The Corporation does not have an allowance for doubtful accounts as  at December 31, 2011 and did not provide for any doubtful accounts nor was it required to write-off  any receivables or investments during the year ended December 31, 2011. Included in the accounts  receivable total was a $3.2 million promissory note from KMH that was repaid in full on February 13,  2012. The remaining items in accounts receivable were current at December 31, 2011.  Cash and cash equivalents consist of cash bank balances and short-term deposits maturing in less  than 90 days. The Corporation manages the credit exposure related to short-term investments by  selecting counter parties based on credit ratings and monitors all investments to ensure a stable  return, avoiding complex investment vehicles with higher risk such as asset backed commercial  paper. The Corporation held cash and cash equivalents of $3,888,465 at December 31, 2011  (December 31, 2010 - $1,816,868), which represents its maximum credit exposure on these assets.  Total 0-6 months  6 mo-1 yr  1-2 years  3-4 years  Accounts payable and  accrued liabilities  $  1,546,705 $ 1,546,705 $  - $  - $  Dividends payable  1,850,145 1,850,145 - - - Income taxes payable  67,590 67,590 - - - Total $  3,464,440 $ 3,464,440 $  - $  - $ 