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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)
(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash fows of the Group’s fnancial instruments will fuctuate because of
changes in market interest rates. The Company obtains fnancing through bank loans and fnance lease facilities. The Company’s
policy is to obtain the most favourable interest rates available without increasing its interest risk exposure. All the Group’s fnancial
assets and liabilities at foating rates are contractually repriced at intervals of less than 6 months (2013: less than 6 months) from the
end of the reporting period.
The following table sets out the carrying amounts, by maturity, of the Group’s fnancial instruments that are exposed to interest rate
risk:
The Group Note
Within
1 year
1 to
2 years
2 to
3 years
3 to
4 years
4 to
5 years
Over 5
years Total
$’000 $’000 $’000 $’000 $’000 $’000 $’000
2014
Fixed rate
Short-term deposits 21 1,018 – – – – – 1,018
Obligations under fnance
leases 30(c) (120) (43) (41) (42) (36) – (282)
Floating rate
Cash at banks 21 19,311 – – – – – 19,311
Bank loan 25 (421) (421) (421) (421) (421) (1,702) (3,807)
2013
Fixed rate
Short-term deposits 21 1,016 – – – – – 1,016
Obligations under fnance
leases 30(c) (192) (111) (29) (16) (17) (15) (380)
Floating rate
Cash at banks 21 15,602 – – – – – 15,602
Bank loan 25 (336) (336) (336) (336) (336) (1,624) (3,304)
116
Annual Report 2014 •