Icon Energy Limited Annual Report 2023

Notes to the Consolidated Financial Statements for the year ended 30 June 2023 56 Icon Energy Annual Report 2023 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2023 Sensitivity analysis (b) Credit risk (c) Liquidity risk Carrying Amount Contractual Cashflows <1Year 1-5 Years $ $ $ $ 30 June 2023 Trade and other payables 177,453 177,453 177,453 - Non-interest bearing borrowings 393,458 393,458 - 393,458 570,911 570,911 177,453 393,458 30 June 2022 Trade and other payables 96,501 96,501 96,501 - Lease liability 41,315 41,315 41,315 - 137,816 137,816 137,816 - The trade and other receivables balance consist of 94% of trade receivables (2022: nil) and 6% of receivables from the Australian Tax Office for goods and services tax refund (2022: 100%). The Consolidated Entity manages liquidity risk by monitoring forecast and actual cash flows, matching the maturity profiles of the financial assets and liabilities and entering into contracts in accordance with an approved Authority for Expenditure. The Board reviews cashflows and considers short and long term forecasts and any implications to the Consolidated Entity's liquidity. Cash is held in a high interest account to maximise interest income. The amounts held as guarantees are regularly reviewed to ensure any restrictions are lifted as soon as possible. The following are contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted except for the non-interest bearing borrowings which are discounted using a standard business unsecured bank rate when initially measured and subsequently measured at amortised cost. The Consolidated Entity’s liquidity risk relating to financial liabilities at 30 June 2023 is limited to the repayment of the trade payables and borrowings. Trade payables are non-interest bearing and are normally settled on 30 day term. The borrowings are long-term non interest bearing. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Based on financial instuments at 30 June 2023, if the interest rates had increased / decreased by 0.5% from the periodend rates with all other variables held constant, post-tax profit for the year for the Consolidated Entity would have been $11,598 higher/$11,838 lower (30 June 2022: $7,319 higher/$7,321 lower), mainly as a result of the Consolidated Entity’s exposure to interest rates on its variable rate cash and cash equivalents. During the year the Consolidated Entity maintained all cash and cash equivalent balances with the fiancial institution holding an AA- rating based on a S&P Global ratings. The Consolidated Entity does not have any significant credit risk exposure to any single counterparty of any group of counterparties having similar characteristics. Ultimate responsibility for liquidity risk rests with the board of directors, who have an appropriate liquidity risk management framework for the management of the Consolidated Entity’s short, medium and long-term funding and liquidity requirements. NOTE 19 - FINANCIAL INSTRUMENTS (Continued) Credit risk arises from the financial assets of the Consolidated Entity which comprise cash and cash equivalents and trade and other receivables. The Consolidated Entity's exposure to credit risk arises from potential default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Consolidated Entity enters into legally binding contracts and management monitors the progress of these contracts in accordance with contract values, as a means of mitigating the risk from financial loss. Liquidity risk arises from the financial liabilities of the Consolidated Entity and its subsequent ability to meet its obligations to repay their financial liabilities as and when they fall due.