NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
40 FINANCIAL RISK MANAGEMENT (CONT’D)
(d)
Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting their financial obligations
due to shortage of funds. The Group manages its asset and debt maturity profile, operating cash flows and the
availability of funding so as to ensure that all financing, repayment and funding needs are met in a timely and cost-
effective manner. Procedures have been established to monitor and control liquidity on a daily basis by adopting
a cash flow management approach.
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.
The following summarises the maturity profile of the Group’s and Company’s financial assets and liabilities used for
managing liquidity risk at the end of the reporting period based on contractual undiscounted repayment obligations,
including estimated interest payments:
2014
$’000
2013
$’000
1 year
or less
1 to 5
years
Over
5 years
Total
1 year
or less
1 to 5
years
Over
5 years
Total
GROUP
Financial assets:
Marketable securities
78,699
–
– 78,699
–
–
–
–
Trade and other
receivables
115,205 2,203 1,468 118,876
109,731 3,810
– 113,541
Cash and cash
equivalents
480,170
–
– 480,170
274,333
–
– 274,333
Total undiscounted
financial assets
674,074 2,203 1,468 677,745
384,064 3,810
– 387,874
Financial liabilities:
Trade and other
payables
77,120
–
– 77,120
67,701
–
– 67,701
Other non-current
liabilities
–
64
–
64
– 374
– 374
Loans and borrowings
229,051 251,663
– 480,714
144,922 318,284
– 463,206
Derivatives
2,142
181
– 2,323
897
44
– 941
Total undiscounted
financial liabilities
308,313 251,908
– 560,221
213,520 318,702
– 532,222
Total net undiscounted
financial assets/
(liabilities)
365,761 (249,705)
1,468 117,524
170,544 (314,892)
– (144,348)
146
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
