For the financial year ended 31 December 2015
102
HAW PAR CORPORATION LIMITED
27. FINANCIAL RISK MANAGEMENT
(CONTINUED)
(c) Credit risk
(continued)
(i) Financial assets that are neither past due nor impaired
Short-term bank deposits that are neither past due nor impaired are mainly deposits with banks with high
credit-ratings assigned by international credit rating agencies. Trade receivables that are neither past due nor
impaired are substantially companies with a good collection track record with the Group.
(ii) 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 age analysis of trade receivables past due but not impaired is as follows:
The Group
2015
2014
$’000
$’000
Past due within 1 month
191
1,688
Past due 1 to 3 months
33
6
224
1,694
There is $16,000 (2014: $8,000) trade and other receivables that are individually determined to be impaired
and the movement of the related allowance for impairment are as follows:
2015
2014
$’000
$’000
Beginning of financial year
8
23
Allowance made during the year
8
1
Allowance utilised
–
(16)
End of financial year
16
8
(d) Capital risk
In managing capital, the Group’s objectives are to safeguard its ability to continue as a going concern and to
maintain an optimal capital structure so as to maximise shareholder value. In order to maintain or achieve an
optimal capital structure, the Group may adjust the amount of dividend payment, return capital to members, buy
back issued shares or obtain new borrowings.
Management monitors capital based on ability of the Group to generate sustainable profits and availability of
retained profits for dividend payments to members. The Group’s overall strategy remains unchanged from 2014.
The Group and the Company are in compliance with all externally imposed capital requirements for the financial
years ended 31 December 2015 and 2014.
NOT E S TO T H E F I NAN C I A L S TAT EME N T S
(CONTINUED)
