81 All figures are in A$000’s Contract Assets Current <30 days 30-60 days 61 -90 days > 91 days Total 30 June 2023 Estimated total gross carrying amount at default 150,593 224,043 - 7,862 3,272 3,891 389,661 Expected credit loss - - - - - - - Contract Assets Current <30 days 30-60 days 61 -90 days > 91 days Total 30 June 2022 Estimated total gross carrying amount at default 112,722 161,814 - 2,631 1,056 2,805 281,027 Expected credit loss - - - - - - - Liquidity risk Liquidity risk is the risk that the Group and Parent is unable to meet its financial obligations as they fall due. The Group's objective is to maintain a balance between operational cash flow and the use of external funding through bank overdrafts and available lines of credit. The Group's policy is to minimise the use of available lines of credit, keep interest costs to a minimum, whilst still maintaining an adequate cash balance to meet working capital requirements. Contracts in progress and contract receivables, are carried at cost, plus profit recognised, less billings and recognised losses at balance sheet date. Progress billings not received are included in contract debtors due to the contractual right associated with the amounts. Where progress billings exceed the aggregate of costs, plus profit, less losses, the net amounts are shown as an increase in trade and other payables. The cash flow of the Group is exposed to execution risks on construction projects. Cash flows can also be adversely affected by clients being unwilling to resolve variations to contracts in a timely manner. The Group attempts to manage these issues in order that adequate liquidity exists. The following table reflects all contractual fixed payments for settlement, resulting from recognised financial liabilities as of 30 June 2023. Cash flows from financial liabilities without fixed amounts or timing are based on conditions existing at 30 June 2023. Expected Credit losses on Trade Receivables and other receivables The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. The impact on the Group is that the credit risk has increased, however not significantly. Impact of COVID-19 The assessment of recoverability of amounts due from contract customers and trade receivables at 30 June 2023 has considered the impacts of COVID-19 and no material recoverability issues have been identified. Trade receivables Trade receivables 20. Financial risk management objectives and policies (continued) 20. Financial risk management objectives and policies (continued)
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