EAPCC_Annual_Report_.. - Investing In Africa

2010/2011
EAST AFRICAN PORTLAND CEMENT COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 30 JUNE 2011
42. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
Credit risk (continued)
The amount that best represents the company’s maximum exposure to credit risk as at 30 June 2011 is made
up as follows:
Neither past
due nor
impaired
Past due
but not
impaired
Impaired
Total
KShs’000 KShs’000 KShs’000 KShs’000
Trade receivables 166,515 220,187 278,145 664,847
Other receivables and prepayments 577,801 - 101,795 679,596
Amount due from related party 5,703 - 5,703
Bank balances and cash 216,231 - - 216,231
Deposits 406,729 - - 406,729
The customers under the fully performing category are paying their debts as they continue trading. The debt that
is overdue is not impaired and continues to be paid. The finance department is actively following this debts.
Liquidity risk
Ultimate responsibility for liquidity risk management rests with the board of directors, which has built an appropriate
liquidity risk management framework for the management of the company’s short, medium and long term
funding and liquidity management requirements. The company manages liquidity risk by maintaining adequate
reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual
cash flows and matching the maturity profiles of financial assets and liabilities.
The following table analyses the company’s financial liabilities that will be settled on a net basis into relevant
maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The
amounts disclosed in the table below are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances, as the impact of discounting is not significant.
Up to 1 – 3 3 - 12 1 – 5 Over
1 month months months Years 5 years Total
KShs’000 KShs’000 KShs’000 KShs’000 KShs’000 KShs’000
At 30 June 2011
Financial assets
Trade receivables 202,034 102,740 81,928 278,145 - 664,847
Other receivables and prepayments 577,801 - 101,795 - - 679,596
Amount due from related party - - - 5,703 5,703
Bank balances and cash 216,231 - - - - 216,231
Loan swap asset 45,846 45,846 366,770 458,463 916,925
Deposits - 348,143 - - 58,586 406,729
Total financial assets 996,066 496,729 229,569 650,618 517,049 2,890,031
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EAST AFRICAN PORTLAND CEMENT COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS 2010/2011