138
139
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
BAKER TECHNOLOGY LIMITED ANNUAL REPORT 2012
30. Financial riskmanagementobjectivesand policies (cont’d)
Liquidity risk (cont’d)
2012
2011
Group
One year or
less
One year or
less
$
$
Financial assets:
Trade and other receivables
19,121,183
9,875,680
Pledged deposits
11,067,427
6,500,000
Cash and short-term deposits
173,901,562 169,276,813
Total undiscounted financial assets
204,090,172 185,652,493
Financial liabilities:
Trade and other payables
12,531,798 25,297,476
Loans and borrowings
3,678,049
–
Total undiscounted financial liabilities
16,209,847 25,297,476
Total net undiscounted financial assets
187,880,325 160,355,017
Company
Financial assets:
Trade and other receivables
167,652
22,223
Amount due from subsidiaries
2,700,000
600,000
Cash and short-term deposits
167,789,758 142,122,891
Total undiscounted financial assets
170,657,410 142,745,114
Financial liabilities:
Trade and other payables
3,139,566
1,564,475
Total undiscounted financial liabilities
3,139,566
1,564,475
Total net undiscounted financial assets
167,517,844 141,180,639
30. Financial riskmanagementobjectivesand policies (cont’d)
Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments shoulda counterparty default on
its obligations. TheGroup’s exposure to credit risk arises primarily from trade and other receivables. For other
financial assets (including cash and cash equivalents), the Group minimises credit risk by dealing exclusively
with high credit rating counterparties.
The Group’s objective is to seek continual revenue growth while minimising losses incurred due to increased
credit risk exposure. The Group trades only with recognised and creditworthy third parties. It is the Group’s
policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In
addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to
bad debts is not significant.
Credit risk concentration profile
The Group determines concentrations of credit risk by monitoring the country profile of its trade receivables
on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the end of the
reporting period is as follows:
Group
By country
2012
$
% of
total
2011
$
% of
total
Singapore
6,598,194
36
1,348,552
14
China
10,262,496
56
4,687,553
49
Middle East
172,424
1
568,663
6
Asia Pacific (excluding
China and Singapore)
1,210,645
7
3,037,042
31
18,243,759
100
9,641,810
100
At the end of the reporting period, approximately:
-
97% (2011: 90%) of theGroup’s trade receivables were due from 5 (2011: 5) major customers who are
located in Singapore andChina.
-
A nominal amount of $39,040,000 (2011: $23,400,000) relating to a corporate guarantee provided by
theCompany to banks for its subsidiaries’ banking facilities.
for the financial year ended 31december 2012
for the financial year ended 31december 2012
notestothe
financialstatements
notestothe
financialstatements
