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76 GoodLand Group Limited
Notes to the Financial Statements
30 September 2012
31 Financial Risks Management Policies (cont’d)
(d) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its fnancial obligations as they fall due. In
the management of liquidity risk, the Group monitors and maintains a level of cash and cash equivalents
deemed adequate by the management to fnance the Group’s operations and where required, and
mitigate the effects of fuctuation in cash fows. The Group obtains additional funding through bank facilities.
The table below analyses the maturity profle of the Group’s fnancial liabilities based on contractual
undiscounted cash fows.
Cash Flows
Carrying
amount
S$
Contractual
cash fows
S$
Within
1 year
S$
1 to 5 years
S$
After 5
years
S$
Group
As at 30 September 2012
Trade and other payables 7,836,882 7,836,882 7,836,882 - -
Finance lease liabilities 49,040 57,152 27,563 29,589 -
Borrowings 81,345,260 87,744,904 38,565,939 32,054,051 16,124,914
89,231,182 95,638,938 46,430,384 33,083,640 16,124,914
As at 30 September 2011
(Restated)
Trade and other payables 5,200,921 5,200,921 5,200,921 - -
Finance lease liabilities 97,440 116,459 41,079 75,380 -
Borrowings 57,646,204 68,241,734 21,407,778 28,506,787 18,327,168
62,944,565 73,559,114 26,649,778 28,582,167 18,327,168
Cash Flows
Carrying
amount
S$
Contractual
cash fows
S$
Within
1 year
S$
1 to 5
years
S$
After 5
years
S$
Company
As at 30 September 2012
Trade and other payables 643,158 643,158 643,158 - -
Financial guarantee contracts 114,390,960 114,390,960 114,390,960 - -
115,034,118 115,034,118 115,034,118 - -
As at 30 September 2011
(Restated)
Trade and other payables 1,663,045 1,663,045 1,663,045 - -
Financial guarantee contracts 93,133,413 93,133,413 93,133,413 - -
94,796,458 94,796,458 94,796,458 - -
(e) Capital risk
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern and to maintain an optimal capital structure so as to maximise shareholder value. The Group’s
policy is to maintain an adequate capital base so as to maintain investor, creditor and market confdence
and to sustain future business developments. The Group funds its operations and growth through a mix of
equity and debts. This includes the maintenance of adequate lines of credit and assessing the need to raise
additional equity where required.