Page 171 - Annual Report 2014

Notes to the Financial Statements

Year ended 31 December 2014

27 Financial Risk Management (continued)
Credit risk

Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Periodic frequent
credit review and counterparty credit limits are practised.

The Group has no significant concentration of credit risk from trade receivables due to its large diversified customer base.
Credit evaluations are performed on corporate customers requiring credit. Identification documents are obtained from retail
customers. Deposits are obtained for certain categories of higher-risk customers.

The Group places its cash and cash equivalents and enters into treasury transactions only with creditworthy banks and
financial institutions.

The maximum credit risk exposure is represented by the carrying value of each financial asset in the statement of financial
position.

Liquidity risk
The Group monitors its liquidity risk and actively manages its operating cash flows, debt maturity profile and availability of

funding. The Group maintains sufficient level of cash and cash equivalents, and has available funding through diverse sources
of committed and uncommitted credit facilities from banks and the capital market through its medium term note programme.

The following are the expected contractual undiscounted cash outflows (including interest payments) of financial liabilities:

Contractual cash flows

Group Carrying Total Within After 1 year After 5 years
amount 1 year but within but within
5 years 10 years

2014 $m $m $m $m $m

Non-derivative financial liabilities 687.5 758.4 211.7 306.4 240.3
Borrowings 642.4 642.4 642.4 – –
Trade and other payables ^ – –
Balances with related parties 99.2 99.2 99.2

Derivative financial liabilities 3.3 3.3 3.1 0.2 –
Interest rate swaps used for hedging 1,432.4 1,503.3 956.4 306.6 240.3

Contractual cash flows

Group Carrying Total Within After 1 year After 5 years
2013 amount $m 1 year but within but within
5 years 10 years
Non-derivative financial liabilities $m 770.1
Borrowings 588.7 $m $m $m
Trade and other payables ^ 687.5
Balances with related parties 588.7 76.5 9.2 513.8 247.1
588.7 – –
Derivative financial liabilities 76.5 6.6 – –
Interest rate swaps used for hedging 1,441.9 76.5
6.6
1,359.3 4.0 2.6 –
678.4 516.4 247.1

168 many lives of hubbing