ANNUAL REPORT
2016
.99
NOTES TO THE
FINANCIAL STATEMENTS
24.
FINANCIAL INSTRUMENTS: INFORMATION ON FINANCIAL RISKS (CONT¡¯D)
24E. Liquidity risk ¨C financial liabilities maturity analysis (cont¡¯d)
The above amounts disclosed in the maturity analysis are the contractual undiscounted cash flows and such
undiscounted cash flows differ from the amount included in the statement of financial position. When the
counterparty has a choice of when an amount is paid, the liability is included on the basis of the earliest date on
which it can be required to pay. At the end of the reporting year no claims on the financial guarantees are expected.
The liquidity risk refers to the difficulty in meeting obligations associated with financial liabilities that are settled by
delivering cash or another financial asset. It is expected that all the liabilities will be paid at their contractual maturity.
Purchases of new automobiles are generally conducted on a cash on delivery basis and for purchase of new demo
automobiles, a credit period of 90 days may be granted. The average credit period taken to settle purchases of
automobile parts and accessories and other trade payables is about 30 days (2015: 30 days). The other payables are
with short-term durations. In order to meet such cash commitments the operating activity is expected to generate
sufficient cash inflows. The classification of the financial assets is shown in the statement of financial position as they
may be available to meet liquidity needs and no further analysis is deemed necessary.
Financial guarantee contracts - For financial guarantee contracts the maximum earliest period in which the guarantee
amount can be claimed by the other party is used.
At the end of the reporting year no claims on the financial
guarantees are expected to be payable. The financial guarantee contracts relates to the corporate guarantees given
by the company on the banking facilities of certain subsidiaries (Note 21).
Bank facilities:
GROUP
2016
$¡¯000
2015
$¡¯000
Undrawn borrowing facilities
24,047
34,323
The undrawn borrowing facilities are available for operating activities and to settle other commitments. Borrowing
facilities are maintained to ensure funds are available for the operations.
