Cellmid 2018 Annual Report 55
(b) Credit risk
Credit risk is managed on a Group basis. The Group has no signiﬁcant concentration of credit risk other than in respect to a
single counterparty that makes up approximately 50% of the total trade receivables balance. This amount was fully paid in
The maximum exposure to credit risk by class of recognised ﬁnancial assets at the end of the reporting period is equivalent to
the carrying value and classiﬁcation of those ﬁnancial assets (net of any provisions) as presented in the table above.
Trade and other receivables that are neither past due nor impaired are considered to be of high credit quality.
Credit risk related to balances with banks and other ﬁnancial institutions is managed by management in accordance with
approved board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard & Poor’s
rating of at least AA-.
(c) Liquidity risk
The Group manages this risk through the following mechanisms:
• preparing forward looking cash ﬂow analysis in relation to its operational, investing and ﬁnancing activities;
• managing credit risk related to ﬁnancial assets; and
• only investing surplus cash with major ﬁnancial institutions.
The Group is not exposed to any material liquidity risk.
Financial liabilities consist of two items, trade and other payables for which the contractual maturity dates are within 6 months
of the reporting date and loans and borrowings.
Loans and borrowings at reporting date have contractual maturity dates as follows:
(d) Market risk
Foreign exchange risk
Exposure to foreign exchange risk may result in the fair value or future cash ﬂows of a ﬁnancial instrument ﬂuctuating due to
movement in foreign exchange rates of currencies in which the Group holds ﬁnancial instruments which are other than the
functional currency of the Group, being Australian dollars.
The maximum exposure to foreign exchange risk is the ﬂuctuation in exchange rates on the USD and JPY denominated bank
accounts and also the proﬁt and net assets of the Japanese and US subsidiary, Advangen Inc and Advangen LLC.
The Group has performed a sensitivity analysis relating to its exposure to foreign currency risk at the end of the ﬁnancial year. The
sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in this risk.
At the end of the ﬁnancial year, the effect on loss and equity as a result of changes in the foreign exchange rate with all other
variables remaining constant would be as follows:
Within one year 2,007,427 1,840,533
One to ﬁve years 1,166,447 314,572
Year ended 30 June 2018
+/- 5% in foreign exchange rates +/-13,460 -/+6,728
Year ended 30 June 2017
+/- 1% in foreign exchange rates +/-3,366 -/+1,249