notes to the financial statements - Food Empire Holdings Limited

Food Empire Holdings Limited Annual Report 2012
NOTES TO THE FINANCIAL STATEMENTS (cont’d)
For the year ended 31 December 2012
37. Financial risk management objectives and policies (cont’d)
(a)
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 receivables
on an on-going basis. The credit risk concentration profile of the Group’s trade receivables at the balance sheet date is as
follows:
Group
2012 2011
US$’000 US$’000
By country:
Russia 33,099 41,403
Eastern Europe and Central Asia 15,085 15,308
Other countries 6,317 6,339
54,501 63,050
Financial assets that are neither past due nor impaired
Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good payment record with
the Group. Cash and cash equivalents 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 Note 24.
(b)
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 monitors its liquidity risk and maintains a level of cash and cash equivalents deemed adequate by Management to
finance the Group’s operation and to mitigate the effects of fluctuations in cash flows.
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