121
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
34.
FINANCIAL RISK MANAGEMENT (CONT’D)
(b)
Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting
financial obligations due to shortage of funds. The Group’s and Company’s exposure to
liquidity risks arises primarily from mismatches of the maturities of financial assets and
liabilities.
The Group and the Company manages its liquidity risk by ensuring the availability of funding
through an adequate amount of committed credit facilities from financial institutions.
In addition, the Group and Company also maintain surplus cash for future investment
opportunities.
The following are the contractual maturities of financial assets and liabilities of the Group and
Company at balance sheet date based on contractual undiscounted payments:
Within
one year
Two to
five years
Total
$’000
$’000
$’000
Group
As at 31 December 2014
Financial assets:
Investment held for trading
110
–
110
Trade and other receivables
35,547
–
35,547
Cash and cash equivalents
52,661
–
52,661
Total undiscounted financial assets
88,318
–
88,318
Financial liabilities:
Trade and other payables
24,350
–
24,350
Finance lease payables
46
24
70
Bank borrowings
5,990
7,110
13,100
Total undiscounted financial liabilities
30,386
7,134
37,520
Total net undiscounted financial
assets/(liabilities)
57,932
(7,134)
50,798
