Financial Statements - Mewah Group

MEWAH INTERNATIONAL INC.
ANNUAL REPORT 2011
Notes to the Financial Statements
For the financial year ended 31 December 2011
32. Financial risk management (continued)
(c)
Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations due to shortage of funds. The Group
maintains sufficient liquidity by closely monitoring its cash flows. The Group adopts prudent liquidity risk management
policies in maintaining flexibility in funding by keeping credit facilities available with different financial institutions.
The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities (including derivative
financial liabilities) based on contractual undiscounted cash flows. Balances due within 12 months approximate their
carrying balances as the impact of discounting is not significant.
Between Between
Less than 1 and 2 2 and 5 Over
1 year years years 5 years Total
US$’000 US$’000 US$’000 US$’000 US$’000
Group
At 31 December 2011
Trade and other payables (261,816) - - - (261,816)
Borrowings (342,411) (46,053) (3,057) - (391,521)
Gross-settled currency forward contracts
- Receipts 711,616 - - - 711,616
- Payments (715,458) - - - (715,458)
(3,842) - - - (3,842)
Gross-settled futures contracts and forward sales
and purchase contracts
- Receipts 1,189,202 - - - 1,189,202
- Payments (1,005,497) (12,927) - - (1,018,424)
183,705 (12,927) - - 170,778
At 31 December 2010
Trade and other payables (303,130) - - - (303,130)
Borrowings (310,142) (14,095) (5,436) - (329,673)
Gross-settled currency forward contracts
- Receipts 754,409 - - - 754,409
- Payments (728,241) - - - (728,241)
26,168 - - - 26,168
Gross-settled futures contracts and forward sales
and purchase contracts
- Receipts 959,664 - - - 959,664
- Payments (1,041,980) (39,478) - - (1,081,458)
(82,316) (39,478) - - (121,794)
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