Landcorp - Crown Ownership Monitoring Unit

Note 36 – Risk Management (continued)C – Liquidity RiskLiquidity risk is the risk that an entity will encounter difficulty in raising funds at short notice to meet financial commitments. The Group hasliquidity headroom available through term borrowing arrangements and specific funding for seasonal fluctuations (see Note 26).Every year the Group prepares a five-year Business Plan, which includes a forecast of funding requirements. The Treasury Management Committeereviews the required funding and assesses the appropriate level and term structure of funding facilities. Intra-year, Landcorp’s policies require thatcommitted funding facilities are greater than current quarter peak-funding requirements.The table below analyses the Group’s financial liabilities by period of contractual maturity. Parent numbers are not presented as they are notmaterially different from Group. Total amounts do not match to the Statement of Financial Position as contractual flows are the absoluteundiscounted amount of future cashflows, including forecast interest expense on interest-bearing liabilities.2010 0 – 6 6 – 12 One to Two to Greater than No fixedTotal months months two years five years five years maturityNote $000 $000 $000 $000 $000 $000 $000Group 2010LiabilitiesLand sales deposits 29 4,929 – – – – – 4,929Payable for land purchases 29 – – – – – – –Other accounts payable and accruals 29 11,535 11,535 – – – – –Employee entitlements 7,827 3,830 – – – – 3,997Other financial liabilities 26Bank loans 156,772 47,598 2,631 106,543 – – –Interest rate derivatives 10,642 865 865 1,408 5,118 2,386 –Commodity derivatives 35 18 17 – – – –Redeemable preference shares 31 100,408 – – – – – 100,408Total Contractual Maturity 292,148 63,846 3,513 107,951 5,118 2,386 109,3342009 0 – 6 6 – 12 One to Two to Greater than No fixedTotal months months two years five years five years maturityNote $000 $000 $000 $000 $000 $000 $000Group 2009LiabilitiesLand sales deposits 29 7,167 – – – – – 7,167Payable for land purchases 29 – – – – – – –Other accounts payable and accruals 29 15,790 15,790 – – – – –Employee entitlements 6,628 2,839 – – – – 3,789Other financial liabilities 26Bank loans 190,561 57,339 2,243 54,584 76,395 – –Interest rate derivatives 5,524 2,192 1,873 3,030 503 (2,074) –Redeemable preference shares 31 90,408 – – – – – 90,408Total Contractual Maturity 316,078 78,160 4,116 57,614 76,898 (2,074) 101,364Land sales deposits are the receipt of deposit monies for land sales that have not yet been recognised. Landcorp will only need to settle theseliabilities in cash if the sales contracts are cancelled.Redeemable preference shares arise from the protected land agreement (refer Note 31). These shares are likely to be redeemed by the transfer ofprotected land to the redeemable preference shareholder (the New Zealand Government).91