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148 TRANS FORMATION
NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2011
39 FINANCIAL RISK MANAGEMENT (cont’d)
(d) Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting their financial
obligations due to shortage of funds. The Group manages its asset and debt maturity profile, operating cash
flows and the availability of funding so as to ensure that all refinancing, repayment and funding needs are met
in a timely and cost-effective manner. Procedures have been established to monitor and control liquidity on a
daily basis by adopting a cash flow management approach.
The Group assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.
Access to sources of funding is sufficiently available.
The following summarises the maturity profile of the Group’s and Company’s financial assets and liabilities used
for managing liquidity risk at the end of the reporting period based on contractual undiscounted repayment
obligations, including estimated interest payments:
2011
$‘000
2010
$‘000
1 year
or less
1 to 5
years
Over 5
years Total
1 year
or less
1 to 5
years
Over 5
years Total
Group
Financial assets:
Marketable securities 13 – – 13 17 – – 17
Trade and other
receivables 182,109 2,695 – 184,804 138,630 2,315 – 140,945
Cash and cash
equivalents 313,323 – – 313,323 71,597 – – 71,597
Non-current security
deposit – – – – – 217 16,550 16,767
Derivatives – – – – 487 – – 487
Total undiscounted
financial assets 495,445 2,695 – 498,140 210,731 2,532 16,550 229,813
Financial liabilities:
Trade and other
payables 139,693 – – 139,693 107,876 – – 107,876
Other non-current
liabilities – 1,275 – 1,275 – 811 101 912
Loans and borrowings 239,707 564,647 – 804,354 290,255 314,317 – 604,572
Derivatives 171 354 – 525 – 576 – 576
Total undiscounted
financial liabilities 379,571 566,276 – 945,847 398,131 315,704 101 713,936
Total net undiscounted
financial assets/
(liabilities) 115,874 (563,581) – (447,707) (187,400) (313,172) 16,449 (484,123)