Sustainability and Governance Report
[Notes
Notes to the FINANCIAL STATEMENTS
28. Financial risk management objectives and policies (cont'd)
(c) Credit risk (cont'd)
Credit risk concentration profile
The Group determines concentrations of credit risk by monitoring the country and industry sector profile of its trade and other receivables on an ongoing basis. The credit
risk concentration profile of the Group's trade and other receivables at the end of the reporting period is as follows:
By country:
Singapore
Malaysia
Taiwan
Group
2020
$'000 % of total
2019
$'000% of total
2,095
33%
2,878
39%
1,420
23%
803
11%
2,782
44%
3,628
50%
6,297
100%
7,309
100%
Financial assets that are neither past due nor impaired
Trade and other receivables that are neither past due nor impaired are with creditworthy debtors with good payment record with the Group. Cash and deposits that are
neither past due nor impaired are placed with or entered into with reputable financial institutions or companies with high credit ratings and no history of default.
Financial assets that are either past due or impaired
Information regarding financial assets that are either past due or impaired is disclosed in Notes 12 and 13.
(d) 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 the Company's
exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group's and the Company's objective is to maintain a
balance between continuity of funding and flexibility through the use of stand-by credit facilities.
To manage liquidity risk, the Company also monitors its net operating cash flow and maintains an adequate level of cash and cash equivalents and secured committed
funding facilities from financial institutions. In assessing the adequacy of these funding facilities, management reviews its working capital requirements regularly.
The Group assessed the concentration of risk with respect to the refinancing of its debt and concluded it to be low. Access to sources of funding is sufficiently available
and debt maturing within 12 months can be rolled over with existing lenders.
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