NOTES TO THE FINANCIAL STATEMENTS
FOR THE FInAncIAL yEAR EnDED 30 JunE 2016
30
FINANCIAL INSTRUMENTS (CONT’D)
b)
Financial risk management objectives and policies (cont’d)
Credit risk (cont’d)
Financial assets that are neither past due nor impaired
Investment in bonds that are neither past due nor impaired are issued by an institution which has high
credit-rating assigned by an international credit-rating agency and another institution which is not rated.
Trade and other receivables that are neither past due nor impaired are substantially corporate customers
with good collection track record with the Group. Cash and bank balances are placed with reputable
financial institutions with high credit ratings and no history of default.
Financial assets that are past due and/or impaired
There is no other class of financial assets that is past due and/or impaired except for trade receivables.
The table below is an ageing analysis of trade receivables of the Group:
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
(Restated)
Not past due and not impaired
10,612
7,060
–
–
Past due but not impaired
6,324
7,535
–
–
Past due and impaired
143
212
–
–
17,079
14,807
–
–
The age analysis of trade receivables of the Group that are past due but not impaired are as follows:
Group
Company
2016
2015
2016
2015
$’000
$’000
$’000
$’000
Past due < 60 days
3,814
4,526
–
–
Past due 61 to 120 days
882
2,102
–
–
Past due over 121 days
1,628
907
–
–
–
6,324
7,535
–
–
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to
shortage of funds. The Group’s exposure to liquidity risk arises primarily frommismatches of the maturities
of financial assets and liabilities. The Group’s objective is to maintain a balance between continuity of
funding and flexibility through the use of stand-by credit facilities.
In managing its liquidity, management monitors and reviews the Group’s forecasts of liquidity reserves
(comprise cash and cash equivalents and undrawn borrowing facilities) on the basis of expected cash
flows determined at local level in the respective operating companies of the Group in accordance with
limits set by the Group.
105
ISOTEAM LTD.
ANNUAL REPORT 2016
