notes to the financial statements - Investor Relations

CWT Limited
94
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
16 TRADE AND OTHER RECEIVABLES (CONT’D)
Other receivables include accrued income of $31,069,000 (2010: nil) which represents primarily price adjustments to the
provisional sales/purchase price of certain commodities. During the contractually agreed quotational period, the sales/
purchase prices are not fixed and fluctuate based on the changes in the market prices of the underlying metals. The Group
marks to market its provisional sales and purchases based on the forward price for the estimated month of settlement. In the
statement of financial position, positive mark to market adjustments are included within ‘accrued income’ whereas negative
adjustments are included within ‘accrued expenses’. Upon completion of the quotation period, the prices are fixed based
upon the spot price and metal contents and quantities upon receipt of the final assay and weight certificates.
Trade receivable and prepayments in the amount of $155,098,000 (2010: nil) and $8,178,000 (2010: nil) respectively are
pledged as securities for bank credit facilities.
The maximum exposure to credit risk for receivables classified as loans and receivables at the reporting date by business
segment is:
Group Company
2011 2010 2011 2010
$’000 $’000 $’000 $’000
Operating segment
Logistics services 134,811 110,900 120,790 92,681
Engineering services
Commodity marketing and supply chain
30,664 16,933 – –
management (“SCM”) 323,194 – – –
Others 14,078 – – –
502,747 127,833 120,790 92,681
Sales by the SCM segment are generally secured by letters of credit. The Group generally does not require collateral for
sales from other segments. As at 31 December 2011, trade receivables of the Group secured by letters of credit amounted
to $245,045,000 (2010: nil).
The ageing of receivables classified as loans and receivables at the reporting date is:
Group
Gross
Impairment
losses Gross
Impairment
losses
2011 2011 2010 2010
$’000 $’000 $’000 $’000
Not past due 451,482 (6) 87,077 (8)
Past due 0 – 30 days 26,352 (67) 22,361 (55)
Past due 31 – 90 days 17,715 (152) 11,029 (288)
Past due 91 – 180 days 4,708 (230) 4,777 (53)
Past due 181 - 365 days 3,372 (749) 2,583 (557)
Past due more than 1 year 1,896 (1,574) 2,137 (1,170)
505,525 (2,778) 129,964 (2,131)