CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2021 FINANCIALS 222 223 NOTES TO THE FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021 YEAR ENDED 31 DECEMBER 2021 41 FINANCIAL INSTRUMENTS (CONT’D) (i) Credit risk (cont’d) Cash and cash equivalents The cash and cash equivalents are held with bank and financial institution counterparties with sound credit ratings. Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and reflects the short maturities of the exposures. The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties. The amount of the allowance on cash and cash equivalents as at 31 December 2021 and 31 December 2020 was negligible. (ii) Liquidity risk Liquidity risk is the risk that the Group will encounter difficulty inmeeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group monitors its liquidity risk and maintains a level of cash and cash equivalents and credit facilities deemed adequate by management to finance the Group’s operations and to mitigate the effects of fluctuations in cash flows. As at 31 December 2021, the Group has provided financial guarantees to a lender to an associate (note 8). As at 31 December 2020, the Group had provided financial guarantees to an associate (note 8) and a joint venture (notes 9(v) and 28). The Group has contractual commitments to incur capital expenditure on its property, plant and equipment and investment properties, purchase properties and to invest in joint ventures, associates and investees (see note 37). 41 FINANCIAL INSTRUMENTS (CONT’D) (ii) Liquidity risk (cont’d) The following are the remaining contractual maturities of financial liabilities. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements: Carrying amount Contractual cash flows Within 1 year After 1 year but within 5 years After 5 years $’000 $’000 $’000 $’000 $’000 Group 31 December 2021 Non-derivative financial liabilities Interest-bearing borrowings 11,139,993 (11,568,699) (5,398,360) (6,112,234) (58,105) Lease liabilities 265,327 (445,448) (26,330) (51,034) (368,084) Trade and other payables* 1,397,941 (1,412,533) (1,412,533) – – Other liabilities* 94,491 (94,491) – (72,925) (21,566) 12,897,752 (13,521,171) (6,837,223) (6,236,193) (447,755) Derivative financial instruments Derivative liabilities Cross-currency swaps (gross-settled): 14,936 - Outflow (400,259) (329,893) (70,366) – - Inflow 387,741 316,999 70,742 – Interest rate swaps (gross-settled) 941 - Outflow (7,001) (2,377) (4,624) – - Inflow 3,681 1,250 2,431 – 15,877 (15,838) (14,021) (1,817) – Derivative assets Forward exchange contracts (gross-settled): (17,485) - Outflow (1,294,556) (1,294,556) – – - Inflow 1,308,617 1,308,617 – – Cross-currency swaps (gross-settled): (8,788) - Outflow (140,241) (42,176) (98,065) – - Inflow 149,917 46,884 103,033 – (26,273) 23,737 18,769 4,968 – (10,396) 7,899 4,748 3,151 – 12,887,356 (13,513,272) (6,832,475) (6,233,042) (447,755) * Excluding derivatives (shown separately) and deferred income
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