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Notes to the
financial statements
For the financial year ended 31 December 2018
129
A N N U A L R E P O R T
2 0 1 8
27.
Financial risk management objectives and policies (cont’d)
(b)
Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting
financial obligations due to shortage of funds. The Group’s and the Company’s exposure
to liquidity risk arises primarily from mismatches of the maturities of financial assets and
liabilities. The Group’s and Company’s objective is to maintain a balance between continuity
of funding and flexibility through the use of stand-by credit facilities.
The Group assessed the concentration of risk with respect to refinancing its debt and
concluded it to be low. Access to sources of funding is sufficiently available and debt
maturing within 12 months can be rolled over with existing lenders.
Analysis of financial instruments by remaining contractual maturities
The table below summarises the maturity profile of the Group’s and the Company’s financial
assets and liabilities at the end of the reporting period based on contractual undiscounted
repayment obligations.
31.12.2018
Group
One year
or less
One to
five years
Total
$’000
$’000
$’000
Financial assets:
Trade and other receivables
(excluding GST recoverable and
downpayment for capital expenditure)
22,816
–
22,816
Cash and short-term deposits
28,920
–
28,920
Loan to associate
6,284
3,491
9,775
Total undiscounted financial assets
58,020
3,491
61,511
Financial liabilities:
Trade and other payables
(excluding provision for warranty)
10,228
–
10,228
Loans and borrowings
8,822
4,592
13,414
Total undiscounted financial liabilities
19,050
4,592
23,642
Total net undiscounted financial assets/
(liabilities)
38,970
(1,101)
37,869