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Annual Report 2013 LifeBrandz Ltd
Notes to the Financial Statements
31 July 2013
30. Financial risk management objectives and policies (cont’d)
(b) Liquidity risk (cont’d)
Analysis of fnancial instruments by remaining contractual maturities
The table below summarises the maturity profle of the Group’s fnancial assets and liabilities at the end of the
reporting period based on contractual undiscounted repayment obligations.
2013 2012
1 year 1 to 5 Over 1 year 1 to 5 Over
or less years 5 years Total or less years 5 years Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Financial assets
Trade and other receivables 1,376 – – 1,376 282 – – 282
Cash and cash equivalents 1,227 – – 1,227 1,742 – – 1,742
Fixed deposit pledged – 2,024 – 2,024 – – 2,024 2,024
Total undiscounted
fnancial assets 2,603 2,024 – 4,627 2,024 – 2,024 4,048
Financial liabilities
Trade and other payables 4,870 – – 4,870 4,398 – – 4,398
Finance lease 2 – – 2 6 3 – 9
Loans and borrowings 500 – – 500 – – – –
Total undiscounted
fnancial liabilities 5,372 – – 5,372 4,404 3 – 4,407
Total net undiscounted
fnancial assets/
(liabilities) (2,769) 2,024 – (745) (2,380) (3) 2,024 (359)
31. Fair value of financial instruments
The fair value of a fnancial instrument is the amount at which the instrument could be exchanged in a current transaction
between knowledgeable willing parties in an arm’s length transaction, other than in a forced or liquidation sale.
Fair value of fnancial instruments by classes that are not carried at fair value and whose carrying amounts are reasonable
approximation fair values
Management has determined that the carrying amounts of cash and cash equivalents, trade and other receivables, trade
and other payables, fxed deposits and fnance lease, based on their notional amounts, reasonably approximate their fair
values because these are mostly short-term in nature or are repriced frequently.
Fair value of fnancial instruments by classes that are not carried at fair value and whose carrying amounts are not
reasonable approximation of fair value
The loan to a subsidiary has no repayment terms and is repayable only when the cash fows of the borrower permits.
Accordingly, the fair value of the loan is not determinable as the timing of the future cash fows arising from the loan
cannot be estimated reliably.