AS AT 30 JUNE 2011
92
Notes to the Financial Statements (continued)
38. Financial risk management (continued)
Liquidity risk
Prudent liquidity risk management implies maintaining sufcient cash and marketable securities and the availability of
funding through an adequate amount of committed credit facilities. Surplus funds are only invested with licensed banks
in the countries in which the Group operates.
To mitigate against liquidity risk the Group maintains cash reserves and committed undrawn credit facilities to meet
anticipated funding requirements for new business. In addition, the Group can redraw against its committed credit limits
if the principal outstanding is reduced by contractual amortisation payments. Details of unused available loan facilities are
set out in note 22.
Amounts due to funders are repaid directly by rentals and repayments received from the Group’s customers.
The table below analyses the Group’s fnancial liabilities into relevant maturity groupings. The amounts disclosed below are
the contractual undiscounted cash fows.
Less than
1 year
1 to 2 years 2 to 5 years 5 years plus
Total
$’000
$’000
$’000
$’000
$’000
At 30 June 2011 – Consolidated
Payables
29,686
–
–
– 29,686
Loans from fnancial institutions
385,745 243,184 49,960
2 678,891
Net settled (interest rate swaps)
234
15
7
–
256
At 30 June 2010– Consolidated
Payables
40,944
–
–
– 40,944
Loans from fnancial institutions
364,655
165,115
123,697
– 653,467
Fair value of fnancial assets and fnancial liabilities
The categories, carrying amount and fair value of fnancial assets and fnancial liabilities at the balance date are:
2011
Consolidated
Carrying amount Fair Value
$’000
$’000
Financial Assets
Cash and cash equivalents
55,994 55,994
Loans and receivables
712,834 712,834
Loss reserve
35,262 35,262
Financial liabilities
Payables
29,686 29,686
Borrowings (gross)
– Fixed interest rate
371,641 373,275
– Floating interest rate
253,743 253,743
Derivatives used for hedging
228
228