WindarPhotonics AnnualReport 2018 All - Flipbook - Page 58
Notes to the Financial Statements
continued
7. Financial instruments - Risk Management (continued)
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal
repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial
obligations as they fall due. The Group’s policy is to ensure that it will always have sufficient cash to allow it to
meet its liabilities when they become due. The Group uses the invoice discounting facility to assist managing
the cash flows of the Group.
The Board receives cash flow projections on a regular basis as well as information regarding cash balances.
At the end of the financial year, these projections indicated that the Group expected to have sufficient liquid
resources to meet its obligations.
The following table sets out the contractual maturities (representing undiscounted contractual cash-flows) of
financial liabilities:
Between
Up to
3 and 12
3 months
months
€
€
Between
Between
1 and 2
2 and 5
yearsyears
€
€
At 31 December 2018
Trade payables
492,822
-
Invoice discounting
10,735
-
Other payables and accruals
-
588,456
Loans
1,281
3,959
-
-
-
1,130,476
Total financial liabilities 504,838
At 31 December 2017
Trade payables
1,045,516
Invoice discounting
121,209
Other payables and accruals
Loans
1,211
Total financial liabilities
1,167,936
592,415
1,130,476
-
-
325,674
3,368
-
-
-
5,256
329,042
5,256
Over
5 years
€
-
-
5,268
-
1,018,180
-
-
5,268 -
1,018,180
-
More details in regard to the line items are included in note 23 and 24.
Capital Disclosures
The Group monitors capital, which comprises all components of equity (i.e. share capital, share premium, merger
reserve and accumulated retained earnings).
The Group’s objectives when maintaining capital are:
• to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns
for shareholders and benefits for other stakeholders; and
• to provide an adequate return to shareholders by pricing products and services commensurately with
the level of risk.
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure
and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of
dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.
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Windar Photonics - Annual Report and Accounts 2018