2014 Financial Statement
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EDC <strong>2014</strong> Performance Report<br />
Liquidity Risk<br />
The Company’s objective is to maintain a balance between continuity of funding and sourcing<br />
flexibility through the use of available financial instruments. The Company manages its liquidity<br />
profile to meet its working and capital expenditure requirements and service debt obligations. As<br />
part of the liquidity risk management program, the Company regularly evaluates and considers the<br />
maturity of both its financial investments and financial assets (e.g. trade receivables, other<br />
financial assets) and resorts to short-term borrowings whenever its available cash or matured<br />
placements is not enough to meet its daily working capital requirements. To ensure immediate<br />
availability of short-term borrowings, the Company maintains credit lines with banks on a<br />
continuing basis.<br />
Liquidity risk arises primarily when the Company has difficulty collecting its receivables from its<br />
major customer, NPC. Other instances that contribute to its exposure to liquidity risk are when the<br />
Company finances long-term projects with internal cash generation and when there is credit<br />
crunch especially at times when the company has temporary funding gaps.<br />
The tables below show the maturity profile of the Company’s financial assets used for liquidity<br />
purposes based on contractual undiscounted cash flows as of December 31, <strong>2014</strong> and 2013.<br />
On Demand<br />
Less than 3<br />
Months<br />
<strong>2014</strong><br />
3 to >6 to<br />
6 Months 12 Months<br />
(In Thousand Pesos)<br />
>1 to<br />
5 Years<br />
More than<br />
5 Years Total<br />
Loans and receivables -<br />
Cash equivalents ₱– ₱11,334,397 ₱– ₱– ₱– ₱– ₱11,334,397<br />
<strong>Financial</strong> Asset at FVPL 523,593 – – – – – 523,593<br />
AFS investments -<br />
Debt investments 259,847 – – – – – 259,847<br />
₱783,440 ₱11,334,397 ₱– ₱– ₱– ₱– ₱12,117,837<br />
On Demand<br />
Less than 3<br />
Months<br />
2013<br />
3 to >6 to<br />
6 Months 12 Months<br />
(In Thousand Pesos)<br />
>1 to<br />
5 Years<br />
More than<br />
5 Years Total<br />
Loans and receivables -<br />
Cash equivalents ₱– ₱12,101,997 ₱– ₱– ₱– ₱– ₱12,101,997<br />
AFS investments -<br />
Debt investments 377,617 – – – – – 377,617<br />
₱377,617 ₱12,101,997 ₱– ₱– ₱– ₱– ₱12,479,614<br />
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