NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
134
THE STRAITS TRADING COMPANY LIMITED
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:
2015
$’000
2014
$’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
178,282
–
– 178,282
78,699
–
– 78,699
Trade and other
receivables
127,420
– 1,855 129,275
114,950 994 1,269 117,213
Derivatives
200
–
– 200
–
–
–
–
Cash and cash
equivalents
239,325
–
– 239,325
480,170
–
– 480,170
Total undiscounted
financial assets
545,227
– 1,855 547,082
673,819 994 1,269 676,082
Financial liabilities:
Trade and other payables
122,688
–
– 122,688
77,120
–
– 77,120
Other non-current
liabilities
– 251
– 251
– 64
– 64
Loans and borrowings
187,135 338,066 59,430 584,631
229,051 251,663
– 480,714
Derivatives
3,734
24
– 3,758
2,142
181
– 2,323
Total undiscounted
financial liabilities
313,557 338,341 59,430 711,328
308,313 251,908
– 560,221
Total net undiscounted
financial assets/(liabilities)
231,670 (338,341) (57,575) (164,246)
365,506 (250,914)
1,269 115,861
