33. Financial risk management objectives and policies (cont’d)
(b) Credit risk (cont’d)
The concentration of credit risk relating to trade receivables is limited as the Group
provides services spanning a myriad of sectors and industries. The Group’s historical
experience in the collection of trade and other receivables falls within the recorded
allowances.
At 30 June 2014 and 2015, the Group’s and the Company’s maximum exposure
to credit risk is the carrying amount of each financial asset, including derivative
financial instruments. Guarantees granted by the Company and certain subsidiaries
to banks in respect of banking facilities are only given for companies within the
Group. The maximum exposure to credit risk in respect of financial guarantees at the
end of the reporting period is disclosed in Note 30(e)(i) .
Credit risk concentration profile
The Group determines concentration of credit risk by monitoring the business
activities and geographical areas profile of its trade receivables on an on-going
basis. The credit risk concentration profile of the Group’s net trade receivables is
as follows:
Group
2015 2014
$’000 $’000
By business activities
Shipbuilding
15,780 53,322
Shiprepair
91,833 120,101
Shipchartering
28,367 26,596
Engineering
7,568 7,259
143,548 207,278
By geographical areas
Singapore
70,621 92,758
Indonesia
18,947 36,339
Rest of Asia
40,277 53,804
Europe and other countries
13,703 24,377
143,548 207,278
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
154
