Notes to the Consolidated Financial Statements for the year ended 30 June 2023 6. Financial risk management (continued) Liquidity risk management Ultimate responsibility for liquidity risk management rests with the 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 matching the maturity profiles of financial assets and liabilities. Foreign currency risk management The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future commercial transactions and recognised financial assets and financial liabilities denominated in a currency that is not the Group’s functional currency. The risk is measured using sensitivity analysis and cash flow forecasting. The Group’s financial instruments are as follows: Weighted average interest rate 2023 Floating interest rate $’000 < 1 year $’000 1 to 5 years $’000 > 5 years $’000 Noninterest bearing $’000 Total $’000 Fixed Floating Financial assets Cash and cash equivalents 24,057 – – – 349 24,406 5.01% 4.25% Trade and other receivables – 30 – – 34 64 5.20% – Convertible loan – – 1,508 – – 1,508 – – Total financial assets 24,057 30 1,508 – 383 25,978 Financial liabilities Trade and other payables – – – – 184 184 – – Total financial liabilities – – – – 184 184 Weighted average interest rate 2022 Floating interest rate $’000 < 1 year $’000 1 to 5 years $’000 > 5 years $’000 Noninterest bearing $’000 Total $’000 Fixed Floating Financial assets Cash and cash equivalents 39,965 – – – 258 40,223 0.25% 0.36% Trade and other receivables – 30 – – 12 42 0.25% – Total financial assets 39,965 30 – – 270 40,265 Financial liabilities Trade and other payables – – – – 112 112 – – Total financial liabilities – – – – 112 112 40 Sheffield Resources Limited Annual Report 2023
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