33.
FAIR VALUE OF ASSETS AND LIABILITIES (CONTINUED)
(c)
Fair value of financial instruments by classes that are not carried at fair value and
whose carrying amounts are not reasonable approximation of fair value
The fair value of financial assets and liabilities by classes that are not carried at fair value
and whose carrying amounts are not reasonable approximation of fair value are as follows:
Carrying amount
Fair value
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Group
Financial Assets:
Investment in associate
(POS-SEA Pte Ltd)
475
60
*
*
Financial liabilities:
Obligations under finance
leases
624
67
607
63
Bank borrowings
6,817
12,712
6,556
12,229
*
Investment in equity securities carried at cost
Fair value information has not been disclosed for the Group’s investment in equity securities
that are carried at cost because fair value cannot be measured reliably. These equity securities
represent ordinary shares in a company that is not quoted on any market and does not
have any comparable industry peer that is listed. In addition, the variability in the range of
reasonable fair value estimates derived from valuation techniques is significant. The Group
does not intend to dispose of this investment in the foreseeable future.
34.
FINANCIAL RISK MANAGEMENT
The Group and the Company are exposed to financial risks arising from its operations and the use of
financial instruments. The key financial risks include credit risk, liquidity risk, interest rate risk, foreign
currency risk and market price risk. The Board of Directors reviews and agrees policies and procedures
for the management of these risks, which are executed by the Financial Controller.
117
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
