notes to the financial statements - Investor Relations

NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2011
16 TRADE AND OTHER RECEIVABLES (CONT’D)
Company
Gross
Impairment
losses Gross
Annual Report 2011
Impairment
losses
2011 2011 2010 2010
$’000 $’000 $’000 $’000
Not past due 72,770 – 73,297 –
Past due 0 – 30 days 12,144 – 4,028 –
Past due 31 – 90 days 9,996 – 4,994 –
Past due 91 – 180 days 13,832 – 1,782 –
Past due 181 days – 365 days 9,531 – 8,427 –
Past due more than 1 year 4,582 (2,065) 2,297 (2,144)
122,855 (2,065) 94,825 (2,144)
The changes in allowance for impairment losses in respect of receivables classified as loans and receivables during the year
were as follows:
Group Company
2011 2010 2011 2010
$’000 $’000 $’000 $’000
At 1 January 2,131 2,412 2,144 1,858
Allowance recognised/(reversed) 729 350 (79) 297
Allowance utilised (11) (597) – (11)
Translation differences (71) (34) – –
At 31 December 2,778 2,131 2,065 2,144
The Group assessed collectibility based on historical default rates to determine the impairment loss to be recognised.
Management reviews the ageing of receivables classified as loans and receivables, and except for the impaired receivables,
no impairment loss is necessary in respect of the remaining receivables due to the good track records and reputation of
customers.
The Group’s primary exposure to credit risk arises through its trade and other receivables. Concentration of credit risk relating
to these trade and other receivables is limited due to the Group’s many varied customers, which are internationally dispersed.
The Group’s historical experience in the collection of accounts receivable falls within the recorded allowances. Due to these
factors, management believes that no additional credit risk beyond the amounts provided for collection losses is required.
17 LOANS TO SUBSIDIARIES
Note
Company
2011 2010
$’000 $’000
Current
Loans to subsidiaries* 16 89,138 61,181
* Loans to subsidiaries are classified as loans and receivables
The current loans to subsidiaries are unsecured and bear interest at a rate ranging from 1.35% to 2.5% (2010: 1.43% to
10.0%) per annum. The interest rate reprices on monthly or quarterly basis.
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