WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
112
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
– continued
Liquidity and interest risk analyses – continued
Non-derivative financial liabilities
– continued
Bank borrowings and trust receipt loans with a repayable on demand clause
are included in the “on demand or less than 3 months” time band in the above
maturity analysis. As at March 31, 2016 and 2015, the aggregate undiscounted
principal amounts of these bank borrowings and trust receipt loans amounted to
HK$227,514,000 and HK$589,485,000 respectively (2015: HK$169,000,000 and
HK$506,466,000 respectively). Taking into account the Group’s financial position,
the management does not believe that it is probable that the banks will exercise their
discretionary rights to demand immediate repayment. Management believes that the
long-term portion of such bank loans will be repaid one year after the end of the
reporting period in accordance with the scheduled repayment dates set out in the loan
agreement. At that time, the aggregate principal and interest cash outflow will amount
to HK$847,793,000.
The amounts included above for financial guarantee contracts are the maximum
amounts the Group could be required to settle under the arrangement for the full
guaranteed amount if that amount is claimed by the counterparty to the guarantee.
Based on expectations at the end of the reporting period, the Group considers that
it is more likely than not that no amount will be payable under the arrangement.
However, this estimate is subject to change depending on the probability of the
counterparty claiming under the guarantee which is a function of the likelihood that
the financial receivables held by the counterparty which are guaranteed suffer credit
losses.
The amounts included above for variable interest rate instruments for non-derivative
interest rates differ to those estimates of interest rates determined at the end of the
reporting period.
