KINGSMEN CREATIVES LTD
ANNUAL REPORT
2014
89
Notes to the Financial Statements
31 December 2014
30.
Financial instruments: information on financial risks (cont’d)
Financial risk management (cont’d)
Liquidity risk – financial liabilities maturity analysis
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity
is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damages to the Group’s reputation.
The following tables analyse the financial liabilities by remaining contractual maturity (contractual and undiscounted
cash flows) at the end of the reporting year:
Due less
than 1 year
Due within
2 – 5 years
Due after
5 years
Total
Group
$’000
$’000
$’000
$’000
2014
Trade and other payables
99,560
154
–
99,714
Other financial liabilities
5,424
559
1,518
7,501
At end of the year
104,984
713
1,518
107,215
2013
Trade and other payables
97,955
119
–
98,074
Other financial liabilities
3,418
586
1,732
5,736
At end of the year
101,373
705
1,732
103,810
The Company’s financial liabilities consist only of trade and other payables which have a contractual maturity
of within one year. The undiscounted cash flows of the trade and other payables amounted to $1,642,000 (2013:
$1,442,000).
The undiscounted amounts on the other financial liabilities with fixed and floating interest rates are determined by
reference to the conditions existing at the end of the reporting year.
It is expected that all the liabilities will be settled at their contractual maturity. The credit period taken to settle trade
payables is generally between 30 to 90 (2013: 30 to 90) days. Other payables are with short-term durations. In order
to meet such cash commitments, the operating activities are expected to generate sufficient cash inflows.
The following tables analyse the financial guarantee contracts based on the earliest dates in which the maximum
guaranteed amount could be drawn upon:
Due less
than 1 year
Due within
2 – 5 years
Due after
5 years
Total
Group
$’000
$’000
$’000
$’000
2014
Financial guarantee contracts
22,625
3,763
1,446
27,834
2013
Financial guarantee contracts
15,133
3,788
1,494
20,415
Company
2014
Financial guarantee contracts
20,920
3,763
1,446
26,129
2013
Financial guarantee contracts
13,349
3,788
1,494
18,631
As at the end of the reporting year, no claims on the financial guarantee contracts are expected.
