31 FINANCIAL RISK MANAGEMENT
(CONT’D)
(c)
Liquidity Risk
(cont’d)
The table below analyses the maturity profile of the Group’s and the Company’s financial liabilities
based on contractual undiscounted cash flows.
Carrying
amount
Contractual
cash flows
Less than
1 year
Between
2 to 5 years
US$’000
US$’000
US$’000
US$’000
Group
2014
Trade and other payables
25,117
25,117
24,684
433
2013
Trade and other payables
32,283
32,283
26,916
5,367
Borrowings
128
128
128
–
32,411
32,411
27,044
5,367
Company
2014
Other payables
5,459
5,459
5,459
–
2013
Other payables
10,902
10,902
5,535
5,367
The table below shows the contractual expiry by maturity of the Company’s corporate guarantee. The
maximum amount of the financial guarantee contract is allocated to the earliest period in which the
guarantee could be called.
Less than 1 year
2014
2013
US$’000
US$’000
Financial guarantee (Note 29)
15,885
12,865
(d)
Capital Risk
The Group and the Company’s objectives when managing capital are to safeguard the Group and
the Company’s ability to continue as a going concern and to maintain an optimal capital structure so
as to maximise shareholders’ value. The Group and the Company manage its capital structure, and
make adjustment to it, in the light of changes in economic conditions. In order to maintain or achieve
an optimal capital structure, the Group and the Company may adjust the amount of dividend payment,
return capital to shareholders, issue new shares, buy back issued shares, obtain new borrowings or
sell assets to reduce borrowings. No changes were made in the objectives, policies or processes
during the financial years ended 31 December 2014 and 2013.
As disclosed in Note 23, the Group’s subsidiaries in the PRC are required to contribute to and maintain
a non-distributable statutory reserve fund whose utilisation is subject to approval by the relevant
PRC authorities. This externally imposed capital requirement has been complied with by the relevant
subsidiaries for the financial years ended 31 December 2014 and 2013.
NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
GLOBAL INVACOM GROUP LIMITED
ANNUAL REPORT 2014
97
