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PRINCE EDWARD ISLAND
LIQUOR CONTROL COMMISSION
Notes to Financial Statements
March 31,2015
11.
Financial Risk Management (continued...)
Liquidity Risk
Liquidity risk is the risk that the Commission would be unable to meet its obligations. The
Commission manages its liquidity needs by monitoring scheduled debt servicing payments
for long-term financial
liabilities as well as cash inflows and outflows due in day-to-day
business. The data used for analyzing these cash flows is consistent with that used in the
contractual maturity analysis below. Liquidity needs are monitored in various time bands, on
a day-to-day and week-to-week basis, as well as on the basis of a rolling 30 day outlook. Net
cash requirements are compared to available borrowing facilities in order to determine any
surplus or shortfall.
The Commission’s objective is to maintain cash and marketable securities to meet
its
liquidity requirements for a minimum 30 day period. This objective was met for the reporting
period. Funding for long-term liquidity needs are secured by adequate amounts of committed
credit facilities. The Commission’s existing cash resources,
trade receivables, and cash
generated from operations significantly exceed the current cash outflow requirements.
The Commission’s contractual financial liabilities as at March 31, 2015, mature as follows:
Current
Non Current
Within 6 months
6 to 12 Months
ito 5 Years
After 5 Years
$
$
$
$
Accounts payable and
accrued liabilities
2,137,858
Due to the Province
12,279,437
Obligations under
finance leases
16,942
17,634
167,833
1,170,987
Debentures
140,076
189,303
754,581
262.396
14,574,313
206,937
922.414
1.433.383
The Commission’s contractual financial liabilities as at March
31, 2014,
matured as follows:
Current
Non Current
Within 6 months
6 to 12 Months
ito 5 Years
After 5 Years
$
$
$
$
Accounts payable and
accrued liabilities
2,509,055
Due to the Province
12,180,649
Obligations under
finance leases
15,918
16,331
146,886
868,315
Debentures
133,966
218,041
933.636
412,720
14.839.588
234.372
1,080,522
1.281.035