15 Financial Risk Management (continued) iv. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. 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. 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 and banking facilities, by continuously monitoring forecast and actual cash flows, and by 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 2022 $ 2021 $ 2022 $ 2021 $ 2022 $ 2021 $ Financial Liabilities - Trade and other payables 377,255 578,077 – – 377,255 578,077 - Borrowings 55,573 17,227 27,525 17,010 83,098 34,237 Total contractual outflows 432,828 595,304 27,525 17,010 460,353 612,314 Cash and cash equivalents 353,634 5,729,496 – – 353,634 5,729,496 Other assets 185,274 125,044 – – 185,274 125,044 Trade and other receivables 131,568 220,704 – – 131,568 220,704 Total anticipated inflows 670,476 6,075,244 – – 670,476 6,075,244 Net inflow / (outflow) on financial instruments 237,648 5,479,940 (27,525) (17,010) 210,123 5,462,930 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. Notes to the Consolidated Financial Statements for the year ended 31 December 2022 Annual Report 2022 69
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