Cash flows Carrying amount Contractual cash flows Within 1 year 2 to 5 years $’000 $’000 $’000 $’000 Company 31 December 2023 Non-derivative financial liabilities Loans and borrowings 77,709 (80,266) (80,266) – Lease liabilities 223 (226) (226) – Trade and other payables 637,144 (655,748) (268,852) (386,896) 715,076 (734,240) (349,344) (386,896) 31 December 2022 Non-derivative financial liabilities Loans and borrowings 77,632 (85,018) (4,752) (80,266) Lease liabilities 547 (565) (339) (226) Trade and other payables 213,372 (226,211) (39,199) (187,012) 291,551 (311,794) (44,290) (267,504) The maturity analyses show the undiscounted cash flows of the financial liabilities of the Group and the Company on the basis of their earliest possible contractual maturity. The Group has several bank loans which contains debt covenants. A breach of any covenant may require the Group to repay the loan earlier than indicated in the table above. The covenants are monitored on a regular basis by the Treasury department and regularly reported to management to ensure compliance with the covenants. The interest payments on variable interest rate loans and borrowings in the table above reflect market forward interest rates at the period end and these amounts may change as market interest rates change. Except for these financial liabilities, it is not expected that the cash flows included in the maturity analysis above could occur significantly earlier, or at significantly different amounts. In addition to the above table, the Group has exposure to liquidity risk from financial guarantees issued to certain financial institutions, in respect of banking facilities drawn by its subsidiaries and joint ventures of $2,246.8 million (2022: $2,119.4 million). At reporting date, the Group does not consider that it is probable that a claim will be made against the Group under the financial guarantee contracts. Accordingly, the Company does not expect any net cash outflows resulting from the financial guarantee contracts. See note 27 for further information. Market risk Market risk is the risk that changes in market prices, such as foreign currency exchange rates and interest rates 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. When necessary, the Group uses financial instruments such as foreign currency borrowings for the purposes of managing certain financial risks and does not engage in speculation. Notes to the Financial Statements Year ended 31 December 2023 25 FINANCIAL INSTRUMENTS (continued) Liquidity risk (continued) Exposure to liquidity risk (continued) 206 PERENNIAL HOLDINGS PRIVATE LIMITED
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