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Whitehaven Coal Limited : Annual Report 2012
Whitehaven Coal Limited -- Annual Report 2012 95 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2012 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 2012 2011 Cash and cash equivalents 14 513,625 207,602 Trade and other receivables 15 81,320 95,067 Derivative financial instruments 17 6,274 55,998 Investments 18 12,527 16,076 613,746 374,743 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 2012 2011 Asia 25,505 14,990 Europe 15 1,687 Australia 12,352 11,510 37,872 28,187 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 48.3% of the consolidated entity's revenue is attributable to sales transactions with three customers (2011: 40.7% 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, 0% (2011: 44%) 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 2012 (2011: Nil).
Annual Report 2011
Annual Report 2013