186 CSE Global Limited 31. Financial risk management objectives and policies (cont’d) Credit risk (cont’d) Credit risk concentration profile The Group determines concentrations of credit risk by monitoring the country and industry sector profile of its trade receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the end of the reporting period is as follows: Group 2024 2023 $’000 % of total $’000 % of total By geographical segments: Asia-Pacific 35,687 30 30,825 28 Americas 78,407 67 77,095 70 Europe/Middle East/Africa 3,148 3 2,389 2 Total 117,242 100 110,309 100 Financial assets that are neither past due nor impaired Trade and other receivables that are neither past due nor impaired are creditworthy receivables with good payment record with the Group. Cash and bank balances and debt securities are placed with or entered into with reputable financial institutions or companies with high credit ratings and no history of default. Financial assets that are either past due or impaired Information regarding financial assets that are either past due or impaired is disclosed in Note 11. The Group has no significant concentration of credit risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Company’s financial instruments will fluctuate because of changes in market interest rates. The Group’s and the Company’s exposure to interest rate risk arises primarily from their loans and borrowings, interest-bearing loans given to related companies and bank deposits. The Company’s loans at floating rate given to related parties form a natural hedge for its current floating rate bank loan. All of the Group’s and Company’s financial assets and liabilities at floating rates are contractually repriced at intervals of less than 6 months (2023: less than 6 months) from the balance sheet date. In respect to the term loan, the Group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2024
RkJQdWJsaXNoZXIy NTM2MDQ5