Annual Report 2010 - Leeden Limited

A Stronger Leeden in Asia.Notes to the Financial Statementsfor the Financial Year ended 31 December 201037. Financial risk management objectives and policies (cont’d)(d)Liquidity riskLiquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations dueto shortage of funds. The Group’s and Company’s exposure to liquidity risk arises primarily from mismatches ofthe maturities of financial assets and liabilities. The Group’s and the Company’s objective is to maintain a balancebetween continuity of funding and flexibility through the use of stand-by credit facilities.The Group’s and the Company’s liquidity risk management policy is to maintain a minimum current ratio of 1.0 atall times and to maintain sufficient liquid financial assets and stand-by credit facilities.The table below summarises the maturity profile of the Group’s and the Company’s financial assets and liabilitiesat the balance sheet date based on contractual undiscounted repayment obligations.Group2010Financial assets:Less than1 year 1 to 5 years Over 5 years Total$’000 $’000 $’000 $’000Other investments – – 404 404Amounts due from related parties 1,124 – – 1,124Trade debtors 46,872 – – 46,872Other debtors 6,771 – – 6,771Fixed deposits 325 – – 325Cash and bank balances 21,368 – – 21,368Total undiscounted financial assets 76,460 – 404 76,864Financial liabilities:Amounts due to bankers and long-term loans 47,324 13,594 – 60,918Trade creditors 13,713 – – 13,713Other creditors and accruals 8,990 – – 8,990Amounts due to related parties 3,682 – – 3,682Hire purchase creditors 1,421 2,162 21 3,604Derivatives 208 – – 208Total undiscounted financial liabilities 75,338 15,756 21 91,115Total net undiscounted financialassets/(liabilities) 1,122 (15,756) 383 (14,251)96