NOTES TO FINANCIAL STATEMENTS
30 June 2015
Annual Report 2015
Karin Technology Holdings Limited
113
34. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
(continued)
(c)
CREDIT RISK
The carrying amounts of trade receivables included in the consolidated statement of financial position
represents the Group’s maximum exposure to credit risk in relation to the Group’s financial assets. The
Group has no significant concentration of credit risk in relation to trade receivables due to the Group’s
large customer base. Concentrations of credit risk are analysed by customer/counterparty, by geographical
region and by industry sector.
The Group performs ongoing credit evaluations of its customers’ financial condition and requires no
collateral from its customers. The allowance for doubtful debts is based upon a review of the expected
collectability of all trade receivables. In this regard, the directors of the Company consider that the Group’s
credit risk is minimal. Further quantitative data in respect of the Group’s exposure to credit risk arising
from trade receivables are disclosed in note 17 to the financial statements.
With respect to credit risk arising from the other financial assets of the Group, which comprise bank
balances and other receivables, the Group’s exposure to credit risk arises from default of other parties,
with a maximum exposure being equal to the carrying amounts of these instruments. There is no significant
concentration of credit risk within the Group in relation to the other financial assets.
(d)
LIQUIDITY RISK
The Group monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool
considers the maturity of both its financial liabilities and financial assets (e.g., trade receivables) and
projected cash flows from operations.
The Group adopts a prudent liquidity risk management which implies maintaining sufficient cash and the
ability to apply for bank loan facilities if necessary.
The Group’s financial liabilities as at 30 June 2015, based on the contractual undiscounted payments,
PG ),
),
BOE ),
),
XFSF NBUVSF
within one year and over one year, respectively. Further details of the financial liabilities of the Group
are set out in note 33 to the financial statements. The balances due within one year and over one year
approximate to their carrying balances as the impact of the discount is not significant. In addition, as at
+VOF
UIF (SPVQ IBE B CBOL HVBSBOUFF HJWFO JO MJFV PG B VUJMJUZ EFQPTJU PG ),
HK$207,000), which was repayable on demand.
The Company’s financial liabilities as at 30 June 2015, based on the contractual undiscounted payments,
PG ),
),
XPVME NBUVSF XJUIJO POF ZFBS 'VSUIFS EFUBJMT PG UIF GJOBODJBM
liabilities of the Company are set out in note 33 to the financial statements. The balances due within one
year from the end of the reporting period approximate to their carrying balances as the impact of the
discount is not significant. In addition, the Company is also exposed to liquidity risk through the granting
of financial guarantees. At 30 June 2015, the Company had guarantees given to banks and suppliers
JO DPOOFDUJPO XJUI GBDJMJUJFT HSBOUFE UP TVCTJEJBSJFT BOE VUJMJTFE BT UP BO BHHSFHBUF PG ),
),
XIJDI XFSF SFQBZBCMF PO EFNBOE GVSUIFS EFUBJMT PG XIJDI BSF EJTDMPTFE JO OPUF
29 to the financial statements.
