Financial Instruments, Financial Risks and Capital Management (Tables)

12 Months Ended

Dec. 31, 2022

The following table sets out the financial instruments as

the end of the reporting period:


	December 31, 2022		December 31, 2021
	S$’000		S$’000
Financial assets
Financial assets at amortized cost		500,384		426,620
Financial assets measured at fair value through profit or loss		29,776		23,983

		530,160		450,603

Financial liabilities
Financial liabilities at amortized cost		47,040		53,447
Lease liabilities		38,462		35,911

		85,502		89,358

Summary of current risk grading framework

Cash and cash equivalents are placed with credit-worthy financial institutions with high credit ratings assigned by international credit-rating agencies and therefore credit risk is limited. The Group has adopted procedures in extending credit terms to customers and monitoring its credit risk. Credit evaluations are performed on customers requiring credit over a certain amount. Before accepting any new customer, the Group carries out research on the credit risk of the new customer and assesses the potential customer’s credit quality and defines credit limits by customer. Limits attributed to customers are reviewed when necessary.

The Group’s current credit risk grading framework comprises the following categories:


Category	Description	Basis for recognising ECL
Performing	The counterparty has a low risk of default and does not have any past-due amounts.	12-month ECL

Doubtful	Amount is more than 90 days past due or there has been a significant increase in credit risk since initial recognition.	Lifetime ECL— not credit-impaired

In default	Amount is more than 120 days past due or there is evidence indicating the asset is credit-impaired.	Lifetime ECL— credit-impaired

Write-off	There is evidence indicating that the debtor is in severe financial difficulty and the Group has no realistic prospect of recovery.	Amount is written off

Summary of credit quality of the financial assets and credit risk rating grade

The table below details the credit quality of the Group’s financial assets (excluding cash and cash equivalents) and contract assets, as well as maximum exposure to credit risk by credit risk rating grades:


	Note		Internal credit rating	12-month or lifetime ECL	Gross carrying amount		Loss allowance			Net carrying amount
					S$’000		S$’000			S$’000
2022
Trade receivables		9	(a)	Lifetime ECL (Simplified approach)		88,912		(104	)		88,808
Contract assets		10	(a)	Lifetime ECL (Simplified approach)		58,808		—			58,808
Other receivables		11	Performing	12-month ECL		15,341		—			15,341

								(104	)

2021
Trade receivables		9	(a)	Lifetime ECL (Simplified approach)		92,561		—			92,561
Contract assets		10	(a)	Lifetime ECL (Simplified approach)		49,365		—			49,365
Other receivables		11	Performing	12-month ECL		11,596		—			11,596

								—

Summary of Monetary assets and liabilities denominated in foreign currencies

The Group has operations in different jurisdictions and transacts in various foreign currencies. At the end of reporting periods, the carrying amounts of significant monetary assets and monetary liabilities denominated in currencies other than the respective Group entities’ functional currencies are as follows:


	Assets				Liabilities
	2022		2021		2022		2021
	S$’000		S$’000		S$’000		S$’000
United States Dollar		145,714		122,833		59,890		46,566

Summary of remaining contractual maturity for non-derivative financial liabilities

The following table details the remaining contractual maturity for

non-derivative

financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be required to pay. Contractual undiscounted cash flows in the table below includes both interest and principal cash flows.


	Weighted average interest rate	On demand or within 1 year		Within 2 to 3 years		Within 3 to 5 years		5 years onwards		Total contractual undiscounted cash flows		Adjustment			Carrying amount
	%	S$’000		S$’000		S$’000		S$’000		S$’000		S$’000			S$’000
December 31, 2022
Non-interest bearing	—		47,040		—		—		—		47,040		—			47,040
Lease liabilities (fixed rate)	1.48% to 9.75%		19,869		19,706		3,667		—		43,242		(4,780	)		38,462

December 31, 2021
Non-interest bearing	—		36,637		—		—		—		36,637		—			36,637
Variable interest rate instruments	1.7% to 3.3%		12,091		—		—		—		12,091		—			12,091
Fixed interest rate Instruments	2.5% to 4.85%		1,837		2,317		747		—		4,901		(182	)		4,719
Lease liabilities (fixed rate)	1.6% to 8.8%		15,884		19,210		3,104		—		38,198		(2,287	)		35,911