68 ANNUAL REPORT  2013  KATHMANDU (c) Liquidity risk Liquidity risk is the risk that an unforeseen event or miscalculation  in the required liquidity level will result in the Group foregoing  investment opportunities or not being able to meet its obligations  in a timely manner, and therefore gives rise to lower investment  income or to higher borrowing costs than normal. Prudent  liquidity risk management includes maintaining sufficient cash,  and ensuring the availability of funding from adequate amounts of  credit facilities. The Group’s liquidity exposure is managed by ensuring sufficient  levels of liquid assets and committed facilities are maintained  based on regular monitoring of cash flow forecasts. The Group  has lending facilities of $130,533,485 / $115,000,000 AUD (2012:  $142,671,855 / $110,000,000 AUD) and operates well within this  facility. This includes short term bank overdraft requirements, and  at balance date no bank accounts were in overdraft. The table below analyses the Group’s financial liabilities and  net-settled derivative financial liabilities into relevant maturity  groupings based on the remaining period at the balance date to  the contractual maturity date. The amounts disclosed in the table  are the contractual undiscounted cash flows. The Group enters into forward exchange contracts to manage the risks associated with the purchase of foreign currency denominated  products. The table below analyses the Group’s derivative financial instruments that will be settled on a gross basis into relevant maturity  groupings based on the remaining period at the balance date to the contractual maturity date. The amounts disclosed in the table are  the contractual undiscounted cash flows. They are expected to occur and affect the profit or loss at various dates between balance date  and the following five years. Less than  1 year  NZ$’000 Between  1 and 2 years  NZ$’000 Between  2 and 5 years  NZ$’000 Over  5 years  NZ$’000 Group 2013 Trade and other payables 33,032 - - - Guarantees 13,105 - - - Borrowings 1,542 1,542 42,914 - 47,679 1,542 42,914 - Group 2012 Trade and other payables 29,304 - - - Guarantees 13,103 - - - Borrowings 3,128 3,128 54,932 - 45,535 3,128 54,932 - Less than 1 year  NZ$’000 Between  1 and 2 years  NZ$’000 Between  2 and 5 years  NZ$’000 At 31 July 2013 Forward foreign exchange contracts -Inflow  115,386 - - -Outflow  (107,499) - - Net Inflow / (Outflow) 7,887 - - Net settled derivatives – interest rate swaps Net Inflow / (Outflow) (470) (270) (102) At 31 July 2012 Forward foreign exchange contracts -Inflow  96,243 - - -Outflow  (99,138) - - Net Inflow / (Outflow) (2,895) - - Net settled derivatives – interest rate swaps Net Inflow / (Outflow) (606) (300) (83)