NOTICE OF ANNUAL GENERAL MEETING
statisTICS OF SHAREHOLDINGs
FINANCIAL CONteNts
CORPORATE GOVERNANCE REPORT
81
Navigating Challenges • EMBRACING DIVERSITY | ANNUAL REPORT 2015
Notes to the financial statements
13 Deferred tax liabilities (Cont’d)
The unutilised tax losses and unabsorbed capital allowances are available for set-off against future taxable
profits subject to compliance with the Singapore Income Tax Act Chapter 134. The deductible temporary
differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect
of these items because it is not probable that future taxable profit will be available against which the Group
can utilise the benefits.
14 Trade and other payables
Group
Company
2015
2014
2015
2014
$’000
$’000
$’000
$’000
Trade payables
7,808
9,478
36
113
Accrued operating expenses
4,845
5,561
419
371
Advance billings
–
150
–
–
Deposits from customers
526
2,603
–
–
Other payables
105
22
–
–
13,284
17,814
455
484
The Group’s exposure to currency and liquidity risks related to trade and other payables is disclosed in note 15.
Provision for performance guarantee
In 2007, KHMO issued a performance guarantee for an Australian project undertaken by T-D Joint Venture
Pty Ltd (“TDJV”), in which a related party is a joint venture partner. The maximum potential amount of the
performance guarantee was approximately $7 million. The performance guarantee was called in 2009. Based
on independent legal advice, the statutory time bar in relation to claims associated with the performance
guarantee has expired during the year.
15 Financial risk management
The Group has exposure to the following risks from financial instruments:
•
credit risk
•
liquidity risk
•
market risk
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives,
policies and processes for measuring and managing risk.
Risk management framework
The Group has a system of controls in place to create an acceptable balance between the cost of risks occurring
and the cost of managing the risks. Management continually monitors the Group’s risk management process to
ensure that an appropriate balance between risk and control is achieved.
