Annual Report 2016
103
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
5.
F I NANC I AL I NSTRUMENTS , F I NANC I AL R I SKS AND CAP I TAL
MANAGEMENT
(a)
Categories of financial instruments
The following table sets out the financial instruments as at the end of the reporting period:
THE GROUP
THE COMPANY
2016
2015
2016
2015
HK$’000
HK$’000
HK$’000
HK$’000
Financial assets
Derivative financial instruments
(fair value through profit or loss)
–
20
–
–
Loan and receivables (including
cash and cash equivalents)
1,071,017
889,286
196,938
211,382
Available-for-sale financial assets
2,001
2,001
–
–
Financial liabilities
Liabilities at amortised cost
1,251,485
1,045,812
9,344
9,403
Derivative financial instruments
(fair value through profit or loss)
14
92
–
–
Financial guarantee contracts
–
730
–
730
(b)
Financial risk management policies and objectives
The Group is exposed to financial risks arising from its operations and the use of financial
instruments. The key financial risks include foreign currency risk, interest rate risk, credit risk
and liquidity risk. The Board of Directors reviews and agrees policies and procedures for the
management of these risks, which were executed by the treasury department. It is and has
been throughout the year the Group’s policy that no derivatives shall be undertaken except
for the use as hedging instruments where appropriate and cost-efficient.
The Group uses derivative financial instruments to manage its exposure to foreign currency
risk and interest rate risk, including forward exchange contracts and interest rate swap
contracts to reduce such exposures.
There has been no change to the Group’s exposure to these financial risks or the manner in
which it manages and measures the risk.
