2012 wintec annual report

NOTES TO THE
FINANCIAL STATEMENTS
For the year ended 31 December 2012.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to Standard and Poor’s credit
ratings (if available) or to historical information about counterparty default rates:
CONSOLIDATED
PARENT
2012
$’000
2011
$’000
2012
$’000
2011
$’000
COUNTERPARTIES WITH CREDIT RATINGS
Cash at bank and term deposits
AA - - - -
AA- 1,339 (3,111) (65) (4,992)
Total cash at bank and term deposits 1,339 (3,111) (65) (4,992)
COUNTERPARTIES WITHOUT CREDIT RATINGS
Loans to related parties
Existing counterparty with no defaults in the past - - - -
Existing counterparty with defaults in the past - - - -
Total loans to related parties - - - -
Debtors and other receivables
Existing counterparty with no defaults in the past 12,248 12,717 13,887 14,639
Existing counterparty with defaults in the past - - - -
Total debtors and other receivables 12,248 12,717 13,887 14,639
Liquidity risk
Management of liquidity risk
Liquidity risk is the risk that the Institute and Group will encounter difficulty raising liquid funds to meet commitments as they fall due.
Prudent liquidity risk management implies maintaining sufficient cash, the availability of funding through an adequate amount of committed
credit facilities, and the ability to close out market positions. Flexibility in funding is maintained by keeping committed credit lines available.
The Institute and Group have a maximum amount that can be drawn down against their overdraft facility of $5m (2011 $5m). This facility
can be used for a maximum period of 90 days in any twelve month period. The Institute and Group manages liquidity risk by continuously
monitoring forecast and actual cash flow requirements and matching the maturity profiles of financial assets and liabilities for 2012.