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CIMIC Group Limited Annual Report 2016 |
Financial Report
Notes continued
for the 12 months to 31 December 2016
35. FINANCIAL INSTRUMENTS
CONTINUED
b) Liquidity risk
Liquidity risk is the risk of having insufficient funds to settle financial liabilities when they fall due. This includes having insufficient levels
of committed credit facilities. The Group’s objective is to maintain efficient use of cash and debt facilities in order to balance the cost of
borrowing and ensuring sufficient availability of credit facilities, to meet forecast capital requirements. The Group adopts a prudent
approach to cash management which ensures sufficient levels of cash and committed credit facilities are maintained to meet working
capital requirements. Liquidity is reviewed continually by the Group’s treasury departments through daily cash monitoring, review of
available credit facilities and forecasting and matching of cash flows.
At 31 December 2016 the Group had undrawn bank facilities of $1,686.4 million
(31 December 2015: $1,861.5 million), and undrawn
guarantee facilities of $546.3 million
(31 December 2015: $563.9 million).
Contractual maturities of financial liabilities and cash flow hedge contracts as at 31 December 2016:
December 2016
Carrying
amount
Contractual
cash flows
Less than
1 year
1-5 years
More than
5 years
$m
$m
$m
$m
$m
Non-derivative financial liabilities
Interest bearing loans
877.1
(996.5)
(373.2)
(327.1)
(296.2)
Finance lease liabilities
22.8
(23.4)
(23.4)
-
-
Limited recourse loans
267.3
(268.3)
(18.3)
(250.0)
-
Total interest bearing liabilities
1
1,167.2
(1,288.2)
(414.9)
(577.1)
(296.2)
Trade and other payables
5,003.5
(5,003.5)
(4,716.9)
(286.6)
-
Derivative financial liabilities / (assets)
Forward exchange contracts used for foreign
currency hedging:
Net derivative financial liabilities / (assets)
2
3.0
Inflow
128.3
121.6
6.7
-
Outflow
(131.9)
(125.0)
(6.9)
-
Other cashflow hedges:
Net derivative financial (assets)
(15.7)
Inflow
1.3
0.9
0.4
-
Outflow
(16.0)
-
(16.0)
-
Total net derivative financial liabilities / (assets)
(12.7)
(18.3)
(2.5)
(15.8)
-
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