Page 66 - Sun Resources 2014 Annual Report

19 Financial Risk Management (continued)
b Credit risk
Credit risk is managed on a group basis. Credit risk arises from cash and cash equivalents, and deposits with
banks and institutions, as well as credit exposures to customers, including outstanding receivables and committed
transactions. For banks and financial institutions, only independently related parties with a minimum rating of “A” are
accepted. Customers are reviewed taking into account their financial position, past experience and other factors for
compliance with credit limits. Historically, the Group has not had any issues with credit quality and late payment.
The maximum exposure to credit risk at the reporting date is the carrying amount of the financial assets summarised below:
Consolidated
2014 2013
$ $
Other receivables 3,296,130 342,046
c Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and, the availability of
funding through an adequate amount of committed credit facilities. The Group manages liquidity risk by continuously
monitoring forecast and actual cash flows.
Maturities of financial assets and liabilities
2014
Consolidated
Floating
interest
rate (i)
0-6 months
Fixed
interest rate Non-interest
bearing
0-6 months
Average
interest rate
0-6
months
7-12
months
Between
1-2 years Total
Float-
ing
(i)
Fixed
Note $ $ $ $ $ $ % %
Financial assets
Cash assets 5 1,807,972 - - - - 1,807,972 2.6 -
Term deposits 5 - 850,000 - - - 850,000 - 3.4
Other receivables 6 - - - - 3,296,130 3,296,130 - -
1,807,972 850,000 - - 3,296,130 5,954,102
Financial liabilities
Payables 10 - - - - 5,328,594 5,328,594 - -
- - - - 5,328,594 5,328,594 - -
Net financial assets 1,807,972 850,000 - - (2,032,464) 625,508
(i) Floating interest rates represent the most recently determined rate applicable to the instrument at reporting date.
2013
Consolidated
Floating
interest
rate (i)
0-6
months
Fixed
interest rate Non-interest
bearing
0-6
months
Average
interest rate
0-6
months
7-12
months
Between
1-2 years Total
Float-
ing
(i)
Fixed
Note $ $ $ $ $ $ % %
Financial assets
Cash assets 5 2,723,425 - - - - 2,723,425 2.8 -
Term deposits 5 - 827,324 - - - 827,324 - 4
Other receivables 6 - - - - 342,046 342,046 - -
2,723,425 827,324 - - 342,046 3,892,795
Financial liabilities
Payables 10 - - - - 6,107,815 6,107,815 - -
- - - - 6,107,815 6,107,815
Net financial assets 2,723,425 827,324 - - (5,765,769) (2,215,020)
(i) Floating interest rates represent the most recently determined rate applicable to the instrument at reporting date.
NOTES TO AND FORMING PART OF THE CONSOLIDATED
FINANCIAL STATEMENTS
64 SUN RESOURCES ANNUAL REPORT 2014