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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
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38. FINANCIAL RISK MANAGEMENT continued
2. Financial risk management continued d.
Credit risk
The following table presents the maximum exposure to credit risk of the Group’s financial assets:
March
31, 2016
December 31, 2015
Cash and cash equivalents 35.737
28,117 Other current financial assets
2.786 2,818
Trade and other receivables, net 9.711
7,872 Other non-current assets
361 379
Total 48.595
39,186
The Group is exposed to credit risk primarily from trade and other receivables. The credit risk is managed by continuous monitoring of outstanding balances and collection.
Trade and other receivables do not have any major concentration risk whereas no customer receivable balances exceed 5 of trade receivables of March 31, 2016.
Management is confident in its ability to continue to control and sustain minimal exposure to credit risk given that the Group has recognized sufficient provision for impairment of
receivables to cover incurred loss arising from uncollectible receivables based on existing historical data on credit losses.
e. Liquidity risk
Liquidity risk arises in situations where the Group has difficulties in fulfilling financial liabilities when they become due.
Prudent liquidity risk management implies maintaining sufficient cash in order to meet the Group’s financial obligations. The Group continuously performs an analysis to monitor
financial position ratios, such as liquidity ratios and debt-to-equity ratios, against debt covenant requirements.
The following is the maturity profile of the Group’s financial liabilities:
Carrying amount
Contractual cash flows
2016 2017
2018 2019
2020 and thereafter
March 31, 2016
Trade and other payables
14.283 14.283
14.283 -
- -
- Accrued expenses
8.182 8.182
8.182 -
- -
- Loans and other
borrowings Bank loans
19.334 24.112
4.849 3.674
9.207 2.347
4.035 Bonds and notes
9.530 20.676
1.027 818
958 1.229
16.644 Obligations under
finance leases 4.599
4.886 756
909 805
773 1.643
Two-step loans 1.499
1.753 289
242 246
218 758
Total 57.427
73.892 29.386
5.643 11.216
4.567 23.080
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the Three Months Period Ended March 31, 2016 and 2015 unaudited
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
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38. FINANCIAL RISK MANAGEMENT continued
