by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Whitehaven Coal Limited : Annual Report 2011
WhitehavenCoalLimited–AnnualReport2011 75 noteS to the Financial StatementS 30 june 2011 5. fiNANCiAL Risk mANAGEmENT OBJECTivEs ANd POLiCiEs (CONTiNuEd) Risk exposures and responses (continued) Credit risk Credit risk arises from the financial assets of the consolidated entity, which comprise cash and cash equivalents, trade and other receivables, available for sale financial assets, derivative financial instruments and the granting of financial guarantees The consolidated entity’s exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of the financial assets, as outlined below Exposure to credit risk The consolidated entity’s maximum exposure to credit risk at the reporting date was: Carrying amount Carrying amount In thousands of AUD Note 30 June 2011 30 June 2010 Cash and cash equivalents 14 207,602 141,049 Trade and other receivables 15 95,067 326,365 Derivative financial instruments 17 55,998 23,127 Available-for-sale financial assets 18 16,076 1,210 374,743 491,751 The consolidated entity’s maximum exposure to credit risk for trade receivables at the reporting date by geographic region was: Carrying amount Carrying amount In thousands of AUD 30 June 2011 30 June 2010 Asia 14,990 32,801 Europe 1,687 10,030 Australia 11,510 3,499 28,187 46,330 Trade and other receivables The consolidated entity’s exposure to credit risk is influenced mainly by the individual characteristics of each customer The demographics of the consolidated entity’s customer base, including the default risk of the industry and country in which customers operate, has less of an influence on credit risk Approximately 40 7% of the consolidated entity’s revenue is attributable to sales transactions with three customers (2010: 49% with three customers) More than 90 percent of the consolidated entity’s customers have been transacting with the consolidated entity for over five years, and losses have occurred infrequently Of the consolidated entity’s trade and other receivables, 44% (2010: 76%) relate to receivables resulting from the sell down of the Narrabri Joint Venture (refer to note 7) The remaining trade and other receivables relate mainly to coal customers The consolidated entity does not require collateral in respect of trade and other receivables The consolidated entity trades only with recognised, creditworthy third parties Receivable balances are monitored on an ongoing basis with the result that the consolidated entity’s exposure to bad debts is not significant The consolidated entity has not recognised any impairment loss for trade and other receivables during the year ended 30 June 2011 (2010: Nil)
Annual Report 2010
Annual Report 2012