Ntegrator International Ltd. - Annual Report 2020

92 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 24. Financial risk management (continued) (b) Credit risk (continued) As at 31 December 2020 and 2019, no loss allowance are recognised as the management believes that the amounts that are collectible, based on historical payment behaviour and credit-worthiness of the other receivables. There has been no change in the estimation techniques or significant assumptions made during the current reporting period in assessing the loss allowance for other receivables. The Company has issued financial guarantees to banks for borrowings of its subsidiary corporations. These guarantees are subject to the impairment requirements of SFRS(I) 9. The Company has assessed that its subsidiary corporations have strong financial capacity to meet their contractual cash flow obligations in the near future and hence, does not expect any significant credit losses arising from these guarantees. (c) Liquidity risk Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents and the availability of funding through an adequate amount of committed credit facilities. At the reporting date, assets held by the Group and the Company for managing liquidity risk included cash and cash equivalents as disclosed in Note 11. Management monitors rolling forecasts of the liquidity reserve, comprises of undrawn borrowing facility and cash and cash equivalents (Note 11) of the Group and the Company on the basis of expected cash flow. This is generally carried out at local level in the operating companies of the Group in accordance with the practice and limits set by the Group. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the Group’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these obligations, monitoring liquidity ratios and maintaining debt financing plans. The table below analyses non-derivative financial liabilities of the Group and the Company into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. Less than Between 1 Between 2 1 year and 2 years and 5 years S$’000 S$’000 S$’000 Group At 31 December 2020 Trade and other payables 4,904 - - Borrowings 15,493 160 46 At 31 December 2019 Trade and other payables 8,156 - - Borrowings 12,242 575 149 Company At 31 December 2020 Trade and other payables 449 - - Financial guarantee contracts 14,912 - - At 31 December 2019 Trade and other payables 500 - - Financial guarantee contracts 11,188 - -