Siren Gold Limited Annual Report 2021

15 Financial Risk Management (continued) 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 2021 $ 2020 $ 2021 $ 2020 $ 2021 $ 2020 $ Financial Liabilities - Trade and other payables 578,077 580,388 – – 578,077 580,388 - Borrowings 17,227 15,913 17,010 34,060 34,237 49,973 Total contractual outflows 595,304 596,301 17,010 34,060 612,314 630,361 Cash and cash equivalents 5,729,496 8,801,581 – – 5,729,496 8,801,581 Other assets 125,044 113,646 – – 125,044 113,646 Trade and other receivables 220,704 143,920 – – 220,704 143,920 Total anticipated inflows 6,075,244 9,059,147 – – 6,075,244 9,059,147 Net inflow / (outflow) on financial instruments 5,479,940 8,462,846 (17,010) (34,060) 5,462,930 8,428,786 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 2021 Siren Gold Limited 48