Sustainability and Governance Report
[Note
Notes to the FINANCIAL STATEMENTS
28. Financial risk management objectives and policies (cont'd)
(d) Liquidity risk (cont'd)
The table below shows the contractual expiry by maturity of the Company's contingent liabilities and commitments. The maximum amount of the corporate guarantee
contracts are allocated to the earliest period in which the guarantee could be called.
One year
One to
or less
$'000
five years
$'000
Over five
years
Total
$'000
$'000
29
29
Company
2020
Corporate guarantee
2019
Corporate guarantee
Fair value of financial instruments
1,851
1,851
Fair value is the amount at which the instrument could be exchanged in a current transaction between knowledgeable willing parties in an arm's length transaction, other
than in a forced or liquidation sale. Fair values are obtained from quoted market prices, discounted cash flow models and option pricing models as appropriate.
Financial instruments whose carrying amounts are reasonable approximation of fair value
Management has determined that the carrying amounts of cash and bank balances (Note 14), trade receivables (Note 12), other receivables (Note 13), trade and other
payables (Note 21), bills payable (Note 22), lease liabilities (Note 19) and bank borrowings (Note 23) at the end of the reporting period, based on their notional amounts, are
reasonable approximations of their fair value, either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or
near the end of the reporting period.
There are no significant differences between the fair values and the carrying amounts of non-current trade and other receivables and bank borrowings.
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