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NOTES TO FINANCIAL STATEMENTS
For the fnancial year ended 31 March 2014
33. Financial risk management objectives and policies (cont’d)
(b) Liquidity risk
Liquidity risk is the risk that the Group will encounter diffculty in meeting fnancial obligations due to shortage of funds. The Group’s
exposure to liquidity risk arises primarily from mismatches of the maturities of fnancial assets and liabilities. The Group’s objective is
to maintain a balance between continuity of funding and fexibility through the use of stand-by credit facilities.
The Group seeks to maintain suffcient liquid fnancial assets and stand-by credit facilities to manage its liquidity risks. As at 31
March 2014, the Group had total bank and fnance lease facilities of $6.1 million (2013: $5.7 million) of which $5.6 million (2013: $4.9
million) were utilised and the balance $539,000 (2013: $770,000) remain unutilised.
The Group assessed the concentration of risk with respect to refnancing its debt and concluded it to be low. Access to sources of
funding is suffciently available and debt maturing within 12 months can be rolled over with existing lenders.
The table below summarises the maturity profle of the Group’s and the Company’s fnancial assets and fnancial liabilities at the end
of the reporting period based on contractual undiscounted repayment obligations:
The Group 1 year or less 1 to 5 years Over 5 years Total
$’000 $’000 $’000 $’000
2014
Financial assets:
Trade and other receivables 130 – – 130
Deposits 1,279 1,783 – 3,062
Cash and bank balances 20,379 – – 20,379
Total undiscounted fnancial assets 21,788 1,783 – 23,571
Financial liabilities:
Trade and other payables 6,150 – – 6,150
Other liabilities 141 – – 141
Finance lease liabilities 129 175 – 304
Bank loan 482 1,860 1,761 4,104
Total undiscounted fnancial liabilities 6,902 2,035 1,761 10,699
Total net undiscounted fnancial assets/ (liabilities) 14,886 (252) (1,761) 12,872
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Annual Report 2014 •