Committed to growth

Financial Statements
Notes to the Consolidated Financial Statements
for the year ended 31 December 2015 continued
(all amounts are presented in thousands of US dollars, unless otherwise stated)
36 Financial and capital risk management continued
The table below analyses the Group’s financial liabilities into the relevant maturity groupings based on the time remaining from the reporting
date to the contractual maturity date.
Less than
1 year
Between
1 and 2 years
Between
2 and 5 years
More than
5 years Total
As at 31 December 2015
Trade payables 190,719 – – – 190,719
Gross-settled swaps:**
– inflows (34,114) (296,625) (379,403) – (710,142)
– outflows 31,769 302,675 460,498 – 794,942
Deliverable forward contract
– inflows (16,799) (22,399) (27,999) – (67,197)
– outflows 17,342 21,671 25,353 – 64,366
Derivative financial liabilities 104,538 – 7,548 – 112,086
Bank borrowings* 1,494,739 586,543 1,183,549 – 3,264,831
Project finance* 19,312 15,414 169,447 157,495 361,668
Bonds issued* 49,016 796,963 72,991 – 918,970
Other current and non-current liabilities 41,158 10,046 3,812 16,772 71,788
Total 1,897,680 1,414,288 1,515,796 174,267 5,002,031
As at 31 December 2014
Trade payables 199,011 – – – 199,011
Gross-settled swap:**
– inflows (116,608) (20,422) (214,204) – (351,234)
– outflows 177,104 11,829 255,762 – 444,695
Derivative financial liabilities 117,527 93,146 – – 210,673
Bank borrowings* 664,050 708,702 1,044,988 – 2,417,740
Bonds issued* 227,680 38,437 788,437 – 1,054,554
Other current and non-current liabilities 46,694 45,695 4,492 18,853 115,734
Total 1,315,458 877,387 1,879,475 18,853 4,091,173
* The table above shows undiscounted cash outflows for financial liabilities (including interest together with the borrowings) based on conditions existing as at
31 December 2015 and 31 December 2014, respectively.
** Payments in respect of the gross settled swap will be accompanied by related cash inflows.
The Group controls the minimum required level of cash balances available for short-term payments in accordance with the financial policy of
the Group. Such cash balances are represented by current cash balances on bank accounts, bank deposits, short-term investments, cash
and other financial instruments, which may be classified as cash equivalents in accordance with IFRS.
The Group assesses liquidity on a weekly basis using a twelve-month cash flow rolling forecast.
36.2 Capital risk management
The Group’s objective when managing capital are to safeguard its ability to continue as a going concern, to provide returns for shareholders
and benefits for other stakeholders, to have available the necessary financial resources for investing activities and to maintain an optimal
capital structure in order to reduce the cost of capital. The Group considers total capital under management to be equity excluding cumulative
currency translation differences as shown in the IFRS consolidated statement of financial position. This is considered more appropriate than
alternatives, such as the value of equity shown in the Company’s statutory financial (accounting) reports.
The Group monitors capital on the basis of the gearing ratio. Additionally, the Group monitors the adequacy of its debt levels using the net
debt to EBITDA ratio.
118 EuroChem Annual Report and Accounts 2015