Notes to the Financial Statements
(Cont’d)
For the year ended 30 April 2015
(In Singapore Dollars)
ANNUAL REPORT 2015
92
BUILDING ON OUR EXTENSIVE NETWORK
35. Financial risk management objectives and policies (cont’d)
(c)
Credit risk
Credit risk is the risk that entities and individuals will be unable to meet their obligations to the
Group resulting in financial loss to the Group. It is the Group’s policy to enter into transactions with
a diversity of creditworthy parties to mitigate any significant concentration of credit risk. The Group
ensures that sales of products and services are rendered to customers with appropriate credit
history and has internal mechanisms to monitor the granting of credit and management of credit
exposures.The Group has made allowances for potential losses on credits extended.
At the end of the reporting period, the Group’s and the Company’s maximum exposure to credit risk
is represented by:
-
The carrying amount of each class of financial assets recognised in the balance sheets,
including derivatives with positive fair values; and
-
Nominal amounts of $127,545,000 (2014: $114,713,000) relating to corporate guarantees
provided by the Company to banks for subsidiaries’ bank facilities.
Surplus funds are placed with reputable financial institutions.
The Group determines concentrations of credit risk by monitoring the country profile of its
trade receivables on an on-going basis. The credit risk concentration profile of the Group’s trade
receivables at the end of each reporting period is as follows:
2015
2014
$’000
% of total
$’000
% of total
Group
By country:
Malaysia
30,878
39.15
28,412
38.09
Indonesia
10,092
12.80
5,167
6.93
Singapore
10,056
12.75
11,427
15.32
Thailand
9,709
12.31
8,658
11.61
South Africa
6,147
7.79
5,285
7.08
Australia
3,250
4.12
3,685
4.94
Others
8,729
11.08
11,967
16.03
78,861
100.00
74,601
100.00
Financial assets that are neither past due nor impaired
Trade and other receivables that are neither past due nor impaired are creditworthy debtors with
good payment record with the Group.
Financial assets that are either past due or impaired
Information regarding financial assets that are either past due or impaired is disclosed in Notes 17
and 19.
