Annual Report - AWB Limited

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Notes to and forming part of the financial statements for the year ended 30 September 2008 AWB LIMITED31. Financial Risk Management Objectives and Policies (continued)Liquidity risk (continued)The table below analyses the Group’s financial liabilities across the defined maturity groupings based on the remaining period at the reportingdate to the earliest contractual maturity date.Contractual maturities non-derivative financial liabilitiesBetween0-3 monthsBetween3-6 monthsBetween6-12 monthsBetween 1and 2 yearsBetween 2and 5 yearsOver5 years Total$’000 $’000 $’000 $’000 $’000 $’000 $’00030 September 2008ConsolidatedTrade Payables 786,003 - - - - - 786,003Bank Overdraft 3,881 - - - - - 3,881Interest bearing liabilities 2,018,406 202,667 873,731 974,774 236,933 - 4,306,511Total contractual cash outflow 2,808,290 202,667 873,731 974,774 236,933 - 5,096,39530 September 2007ConsolidatedTrade Payables 485,885 7,996 - - - - 493,881Bank Overdraft 36,152 - - - - - 36,152Interest bearing liabilities 1,125,750 197,094 108,511 2,080,815 683 101 3,512,954Total contractual cash outflow 1,647,787 205,090 108,511 2,080,815 683 101 4,042,98730 September 2008AWB LimitedTrade Payables 94,713 - - - - - 94,713Total contractual cash outflow 94,713 - - - - - 94,71330 September 2007AWB LimitedTrade Payables 96,187 - - - - - 96,187Total contractual cash outflow 96,187 - - - - 96,187As the amounts in the tables above are the contractual undiscounted cash flows, some balances will not agree with the amounts presented inthe balance sheet.www.awb.com.au 109
AWB LIMITED Notes to and forming part of the financial statements for the year ended 30 September 200831. Financial Risk Management Objectives and Policies (continued)Liquidity risk (continued)The Group manages liquidity risk associated with derivative contracts on a portfolio basis, combining commodity sale and purchasecontracts with financially-settled derivative assets and liabilities.The table below represents the cash inflows and outflows of the derivative instrument portfolio held by the Group as at balance date.AWB Limited does not hold derivative instruments.Contractual maturities on derivative instrumentsBetween0-3 monthsBetween3-6 monthsBetween6-12 monthsBetween 1and 2 yearsBetween 2and 5 yearsOver5 years Total$’000 $’000 $’000 $’000 $’000 $’000 $’00030 September 2008ConsolidatedTotal inflow 3,184,454 652,591 210,351 24,387 - - 4,071,783Total outflow (3,329,467) (472,272) (171,764) (33,721) (3,501) (16) (4,010,741)Net inflow/(outflow) (145,013) 180,319 38,587 (9,334) (3,501) (16) 61,04230 September 2007ConsolidatedTotal inflows 1,794,254 238,025 53,803 33,998 3,930 78 2,124,088Total outflows (1,809,473) (236,267) (37,350) (40,201) (2,343) - (2,125,634)Net inflow/(outflow) (15,219) 1,758 16,453 (6,203) 1,587 78 (1,546)Discussion of contractual maturity on derivative instrumentsExpected net inflows and outflows have been calculated using spot rates as at balance date and reflect gross and net settled positions whereapplicable. The maturity analysis includes contractual cash flows on both derivative assets and derivative liabilities. Contracted cash outflows arenot expected to equate to actual cashflows as the group utilises inventory and other financing facilities whereby title to inventory passes to thefinancier as security for the funding.Credit riskCredit risk is the risk of loss caused by another party not fulfilling its obligations, including:• The risk that a customer or counterparty that has been provided with a product or service is unable or unwilling to meet its obligations; and• The risk that a party reneges on a forward contract prior to the due date or delivery date without settling the price differential.Group ExposureThe Group is exposed to credit risk in the form of:• loans to customers for the purchase of farm assets including land, crops and livestock;• short term commercial trading accounts for customer purchases of farm supplies;• amounts owing for grain trading and derivative financial instruments over commodities; and• exposures to financial institutions.Management of ExposureCredit risk is overseen by a Credit Risk Management Committee (‘the Committee’). The Committee has authority to approve transactions, reviewcredit policy, consider emerging risks and adjust credit risk appetite.The credit risk control system includes:• Risk assessment and measurement tools at the counterparty level;• Regular reporting on credit quality for all portfolios and products;• A system of delegated approval authorities based on the experience and training of the personnel concerned; and• Determination of an impairment allowance that represents an estimate of incurred losses in respect of loans and receivables.110 www.awb.com.au
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6 www.awb.com.auFrom Peter Polson,C
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From Gordon Davis,Managing Director
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AWB todayOur client base extends to
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Landmark Rural ServicesRural Servic
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Financial Services (EBITDA)2004 44.
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Commodity ManagementCommodity Manag
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CorporateCredit ratingsAWB maintain
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People and communityPeopleThe busin
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22 www.awb.com.auManagement team
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24 www.awb.com.au
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Governance at AWBAWB’s Board and
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process was conducted within the co
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Information is regularly communicat
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Recommendation 9.3 - Clearly distin
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AWB Limited BoardPeter Polson Non-e
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36 www.awb.com.au
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AWB LIMITED Directors’ reportYour
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AWB LIMITED Directors’ reportDire
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AWB LIMITED Directors’ reportNon-
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AWB LIMITED Directors’ reportFixe
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AWB LIMITED Directors’ reportTabl
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AWB LIMITED Directors’ reportKMP
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AWB LIMITED Directors’ reportKey
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AWB LIMITED Directors’ reportTabl
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AWB LIMITED Directors’ reportGrou
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AWB LIMITED Income statements for t
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Page 121 and 122: 120 www.awb.com.auAWB LIMITED Indep
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Page 125 and 126: AWB LIMITED Notes124 www.awb.com.au
Page 129: AWB Limited ABN 99 081 890 459380 L
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Annual Report - AWB Limited

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