Financial Report Template Page 62
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80NOTES TO THE FINANCIAL STATEMENTS
(CONT)
FOR THE YEAR ENDED 30 JUNE 2015
NOTE 32 FINANCIAL RISK MANAGEMENT
The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and payable, loans to and from
subsidiaries and bank borrowings.
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies
to these financial statements, are as follows:
Consolidated Group
2015
2014
Note
$
$
Financial Assets
Cash and cash equivalents
12
9,393,350
11,004,417
Loans and receivables – current
13
15,175,778
5,433,189
Loans and receivables – non-current
13
4,215,752
3,629,274
Total Financial Assets
28,784,880
20,066,880
Financial Liabilities
Trade, other payables and other financial liabilities – current
21
41,843,387
16,373,792
Trade, other payables and other financial liabilities – non current
21
11,190,597
–
Borrowings – current
22
19,963,492
5,044,060
Borrowings – non current
22
1,696,937
12,299,849
Total Financial Liabilities
74,694,413
33,717,701
Financial Risk Management Policies
The Directors’ overall risk management strategy seeks to assist the Group in meeting its financial targets, whilst minimising potential
adverse effects on financial performance. Risk management policies are approved and reviewed by the Board of Directors on a
regular basis. These include the credit risk policies and future cash flow requirements.
The main purpose of non-derivative financial instruments is to raise finance for company operations. The Group does not have any
derivative instruments at 30 June 2015 (2014: nil).
The Audit and Risk Management Committee, consisting of Non-executive Directors of the company, meets on a regular basis to
analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic
conditions and forecasts. The Audit and Risk Management Committee’s overall risk management strategy seeks to assist the company
in meeting its financial targets, whilst minimising potential adverse effects on financial performance.
The Audit and Risk Management Committee operates under policies approved by the Board of Directors. Risk management policies
are approved and reviewed by the Board on a regular basis. These include credit risk policies and future cash flow requirements.
Specific Financial Risk Exposures and Management
The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk consisting of
interest rate risk, foreign currency risk and other price risk (commodity and equity price risk). There have been no substantive changes
in the types of risks the Group is exposed to, how these risks arise, or the Board’s objectives, policies and processes for managing or
measuring the risks from the previous period.
a.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at the balance sheet date, to recognised
financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed at the end of the reporting
period and in the notes to the financial statements.
Credit Risk Exposures
The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period, excluding the value of
any collateral or other security held is equivalent to the carrying amount and classification of those financial assets (net of any
provisions) as presented in the statement of financial position.
The Group has no significant concentration of credit risk with any single counterparty or group of counterparties. Details with respect
to credit risk of Trade and Other Receivables is provided in Note 13.
Trade and other receivables that are neither past due or impaired are considered to be of high credit quality. Aggregates of such
amounts are as detailed at Note 13.
SHINE CORPORATE LTD | FINANCIAL REPORT | 2015
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