Notes to the Consolidated Financial Statements  Cardno Limited and its Controlled Entities for the year ended 30 June 2010 33. FINANCIAL RISK MANAGEMENT CONTINUED  Credit risk continued  Liquidity risk  The ageing of the Group’s trade receivables at the reporting date was:  Based on historic default rates, the Group believes that no impairment allowance is necessary in respect of receivables  not past due or past due by up to 60 days. For those receivables outstanding more than 60 days each debtor has been  individually analysed and a provision for impairment established as necessary.  The movement in the provision for impairment in respect of trade receivables of the Group during the year was as  follows:  Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Prudent liquidity  risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of  committed credit facilities. Due to the dynamic nature of the underlying businesses, the Group aims to maintain flexibility  in funding by keeping sufficient committed credit lines available to meet the Group’s requirements.  The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding  the impact of netting agreements:  * Bank loans are a term facility repayable in July 2012.  On 11 August 2010 Cardno completed a $49 million capital rising via a 1:6 fully underwritten renounceable rights issue.  The number of ordinary shares issued under the rights issue was 15,089,139. The capital raised will be used to reduce  debt used for the June 2010 acquisition of ENTRIX and ERI and for working capital.  Page 60 of 80  Consolidated  30 June 2010  Carrying  amount  Contractual  cash flows  $’000  Less than  1 year  1 – 5 years  Over 5  years  Non-derivative financial liabilities  Trade and other payables  82,462  82,462  82,462  -  -  Finance leases & hire purchase  5,460  6,453  2,531   3,922 -  Bank loans  169,780  170,120  47,819  122,301*  -  Derivative financial liabilities  Forward exchange contract  -  -  -  -  -  257,702 259,035 132,812 126,223 - 2010  $’000  2009  $’000  Balance at 1 July  5,403 3,112 Impairment loss recognised  2,699 2,951 Receivables written off  (1,242) (1,602) Merger acquisition  2,218 751 Foreign exchange  (92) 191 Balance at 30 June  8,986 5,403 2010 2009 Gross $’000  Impairment  $’000  Gross  $’000  Impairment  $’000  Not past due (current)  58,705  -  42,122  -  Past due 0-30 days (30 day ageing)  23,912  -  17,341  -  Past due 31-60 days (60 day ageing)  6,303  -  9,024  -  Past due more than 60 days (+90 day ageing) 20,446 8,986 24,796 5,403 109,366 8,986 93,283 5,403