Creative 2015 Annual Report Download - page 56

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56
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2015
30. FINANCIAL RISK MANAGEMENT (cont’d)
(b) Credit risk (cont’d)
Group
2015 2014
US$’000
US$’000
Past due 1 to 60 days 1,310 1,086
Past due 61 to 120 days 2 333
Past due over 120 days 385 747
1,697 2,166
The carrying amount of trade receivables individually determined to be impaired and the movements in the related allowance
for impairment are as follows:
Group
2015 2014
US$’000 US$’000
Past due 1 to 60 days 135 5
Past due 61 to 120 days 7 10
Past due over 120 days 2,996 3,471
3,138 3,486
Less: Allowance for impairment (3,138) (3,486)
– –
Beginning of nancial year 3,486 4,391
Allowance made (write-back) 21 (28)
Allowance ulised (369) (877)
End of nancial year 3,138 3,486
The impaired trade receivables arose mainly from sales to customers who signicantly delayed their payments.
(c) Liquidity risk
To manage liquidity risk, the Group monitors its net operating cash ows and maintains an adequate level of cash and cash
equivalents and secured committed funding facilities from nancial institutions. In assessing the adequacy of these funding
facilities, management reviews its working capital requirements regularly.
As at 30 June 2015 and 30 June 2014, the Group’s nancial liabilities mature in less than 1 year’s time.
The maximum exposure to credit risk for each class of nancial instruments is the carrying amount of that class of nancial
instruments presented on the balance sheet.
As at 30 June 2015, there were no signicant concentrations of credit risk and only one customer (2014: Nil) individually
accounted for 10% or more of net accounts receivable.
Bank deposits that are neither past due nor impaired are mainly deposits with banks with high credit-ratings assigned by
international credit-rating agencies. Trade receivables that are neither past due nor impaired are substantially companies with
a good collection track record with the Group.
There is no other class of nancial assets that is past due and/or impaired except for trade receivables.
The age analysis of trade receivables past due but not impaired is as follows: