Cellmid 2018 Annual Report 55

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.

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.

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