2015_LCC Annual Report

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. 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 objective is to maintain cash and marketable securities to meet its

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 Due to the Province

2,137,858 12,279,437

Obligations under finance leases

16,942 140,076

17,634 189,303 206,937

167,833 754,581 922.414

1,170,987 262.396 1.433.383

Debentures

14,574,313

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 Due to the Province

2,509,055 12,180,649

Obligations under finance leases

15,918 133,966

16,331

146,886 933.636 1,080,522

868,315 412,720

Debentures

218,041 234.372

14.839.588

1.281.035