Annual Report 2019

163 ANNUAL REPORT 2019 3. FINANCIAL RISK MANAGEMENT (CONTINUED) 3.1 Financial risk factors (continued) (iii) Liquidity risk Cash flow forecasts are prepared by management. Management monitors rolling forecasts on the Group’s liquidity requirements to ensure the Group maintains sufficient liquidity reserve to support sustainability and growth of the Group’s and the Company’s business. Currently, the Group and the Company finance the working capital requirements through a combination of funds generated from operations and borrowings. The rolling forecasts of the Group’s liquidity reserve comprise undrawn facilities of bank loans and other debt financing instruments (note 33(g)) and cash and bank balances (note 28) on the basis of expected cash flow. The Group aims to maintain flexibility in funding while minimising its overall costs by keeping a mix of committed and uncommitted credit lines available. In preparing the consolidated financial statements of the Group, the directors of the Company has given careful consideration to the future liquidity of the Group in light of the fact that the Group’s current liabilities exceeded its current assets by HK$3,012 million as at 31 December 2019. In the opinion of the directors of the Company, the Group will be able to continue as a going concern at least in the coming twelve months taking into consideration the working capital estimated to be generated from operating activities and the undrawn facilities of bank loans and other debt financing instruments. Based on this, the directors of the Company are satisfied that the Group will have sufficient financial resources to meet in full its financial obligations as and when they fall due for the foreseeable future. Accordingly, the directors of the Company consider that it is appropriate to prepare these consolidated financial statements on a going concern basis. The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows including both interest and principal. Within 1 year Between 1 and 2 years Between 2 and 5 years More than 5 years Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 HK$’million HK$’million HK$’million HK$’million HK$’million HK$’million HK$’million HK$’million HK$’million HK$’million Interest-bearing debts 10,557 7,034 3,602 5,522 19,432 22,542 11,093 11,791 44,684 46,889 Other financial liabilities included in creditors and accruals 3,099 2,978 — — — — — — 3,099 2,978 13,656 10,012 3,602 5,522 19,432 22,542 11,093 11,791 47,783 49,867 Lease liabilities 133 — 83 — 153 — 1,546 — 1,915 — In addition to the above, a put option granted by the Group to the non-controlling equity holders of subsidiaries with Put Option Liability (as set out in note 35(b)) amounting to HK$818 million (2018: HK$661 million) as at 31 December 2019 is exercisable on or after 23 February 2020.