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## 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 

The ageing of the Group’s trade receivables at the reporting date was: 

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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: 

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## Liquidity risk 

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: 

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* 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. 

