Siren Gold Limited Annual Report 2020

16 Financial Risk Management (continued) Ultimate responsibility for liquidity risk management rests with the Board of Directors, who have built an appropriate liquidity risk management framework for the management of the Group’s short, medium and long-term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Typically, the Group ensures that it has sufficient cash to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The financial liabilities of the Group include trade and other payables as disclosed in the statement of financial position. All trade and other payables are non-interest bearing and due within 30 days of the reporting date. Contractual Maturities The following are the contractual maturities of financial liabilities of the Group: Within 1 Year Greater Than 1 Year Total 2020 $ 2019 $ 2020 $ 2019 $ 2020 $ 2019 $ Financial Liabilities -  Trade and other payables 587,924 158,298 – – 587,924 158,298 -  Borrowings 15,913 1,937 34,060 – 49,973 1,937 Total contractual outflows 603,837 160,235 34,060 – 637,897 160,235 Cash and cash equivalents 8,801,581 157,853 – – 8,801,581 157,853 Other assets 113,646 – – – 113,646 – Trade and other receivables 143,920 479 – – 143,920 479 Total anticipated inflows 9,059,147 158,332 – – 9,059,147 158,332 Net inflow on financial instruments 8,455,310 (1,903) 34,060 – 8,421,250 (1,903) It is not expected that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts. v. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. vi. Sensitivity Analysis Due to the current nature of the Group, the Group is not exposed to material financial risk sensitivities. vii. Net Fair Values Fair value estimation The fair values of financial assets and financial liabilities can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Financial instruments whose carrying value is equivalent to fair value due to their nature include: – Cash and cash equivalents; – Trade and other receivables; and – Trade and other payables. The methods and assumptions used in determining the fair values of financial instruments are disclosed in the accounting policy notes specific to the asset or liability. The subsidiary listed below has share capital consisting solely of ordinary shares which are held directly by the Group and the proportion of ownership interest held equals the voting rights held by the Group. Notes to the Consolidated Financial Statements for the year ended 31 December 2020 Siren Gold Limited 48