Annual Report 2016
109
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
– continued
(b)
Financial risk management policies and objectives
– continued
(iv) Liquidity risk management
Liquidity risk is the risk that the Group will encounter difficulty in meeting its financial
obligations due to shortage of funds. The Group’s objective is to maintain a balance
between continuity of funding and flexibility through the use of committed credit
facilities. The committed unutilised banking facilities made available to the Group are
approximately HK$489 million (2015: HK$529 million).
The Group manages liquidity risk by maintaining sufficient cash and the availability of
adequate banking facilities to finance the Group’s operations and mitigate the effects
of fluctuations in cash flows.
Liquidity and interest risk analyses
Non-derivative financial liabilities
The following tables detail the remaining contractual maturity for non-derivative
financial liabilities for the Company and the Group. The tables have been drawn up
based on the undiscounted cash flows of financial liabilities based on the earliest date
on which the Company and the Group can be required to pay. Specifically, bank loans
and trust receipt loans with a repayable on demand clause was included in the earliest
time band regardless of the probability of banks choosing to exercise their rights. The
maturity dates for other non-derivative financial liabilities are based on the agreed
repayment dates.
