DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO., LTD. AND ...

Doosan Heavy Industries & Construction Co., Ltd. and SubsidiariesNotes to the Consolidated Financial StatementsFor the years ended December 31, 2012 and 20114. Financial Risk Management, Continued(2) Credit riskThe Group is exposed to credit risk which results in financial losses in the event where the contractualobligation of another entity fails to be fulfilled. Credit risk arises mainly from trade and other receivables,derivatives, deposits etc. The Group maintains measures of credit enhancements by obtaining collateral andassessing the credit ratings of the customers and financial institutes on a regular basis.(i) Exposure to credit riskThe carrying amount of financial assets represents the maximum credit exposure. The maximum exposuresto credit risk as of December 31, 2012 and 2011 are summarized as follows:(In millions of won) 2012 2011Cash and cash equivalents ₩ 1,134,431 783,252Short and long term financial instruments 97,843 130,971Trading and other receivables 1,303,827 1,262,499Other loan and receivables 427,280 465,389Held-to-maturity financial assets 8,580 5,893Derivative instrument assets 413,772 256,485₩ 3,385,733 2,904,489(ii) Aging analysisThe following are the contractual maturities of financial assets as of December 31, 2012 and 2011.2012(In millions of won)Past due0~3monthsPast due3~6monthsPast due6~12monthsMore than12 months TotalTrade receivables ₩ 465,658 132,083 138,451 710,801 1,446,993Loans and other receivables 193,534 942 1,918 100,072 296,466Other 27,886 2,388 5,220 2,349 37,843₩ 687,078 135,413 145,589 813,222 1,781,302Based on historic experience, the Group believes that no impairment is necessary in respect of tradereceivables not past due or past due by up to three months.2011(In millions of won)Past due0~3monthsPast due3~6monthsPast due6~12monthsMore than12 months TotalTrade receivables ₩ 507,282 123,313 211,066 421,507 1,263,168Loans and other receivables 295,094 - 3,600 46,933 345,627Other 26,426 - - - 26,426₩ 828,802 123,313 214,666 468,440 1,635,22136