Old Chang Kee Ltd - Annual Report 2016 - page 128

A N N U A L R E P O R T 2 0 1 6 126
NOTES TO THE
FINANCIAL STATEMENTS
For the Financial Year Ended 31 March 2016
33. Financial risk management objectives and policies (cont’d)
(b) Liquidity risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting financial obligations due to shortage of funds. The Group’s
exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Group’s objective is
to maintain a balance between continuity of funding and flexibility through the use of stand-by credit facilities.
The Group seeks to maintain sufficient liquid financial assets and stand-by credit facilities to manage its liquidity risks. As at 31 March
2016, the Group had total bank and finance lease facilities of $14.0 million (2015: $14.9 million) of which $9.6 million (2015: $10.2
million) were utilised and the balance of $4.4 million (2015: $4.7million) remains unutilised.
The Group assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. Access to sources of
funding is sufficiently available and debt maturing within 12 months can be rolled over with existing lenders.
The table below summarises the maturity profile of the Group’s and the Company’s financial assets and financial liabilities at the end
of the reporting period based on contractual undiscounted repayment obligations:
Group 1 year or less 1 to 5 years Over 5 years Total
$’000 $’000 $’000 $’000
2016
Financial assets:
Trade and other receivables 156 – – 156
Deposits 1,156 1,748 – 2,904
Cash and bank balances 19,407 – – 19,407
Available-for-sale financial assets – – 273 273
Total undiscounted financial assets 20,719 1,748 273 22,740
Financial liabilities:
Trade and other payables 7,129 – – 7,129
Other liabilities 162 – – 162
Finance lease liabilities 125 289 – 414
Bank loan 1,097 4,203 3,341 8,641
Total undiscounted financial liabilities 8,513 4,492 3,341 16,346
Total net undiscounted financial assets/ (liabilities) 12,206 (2,744) (3,068) 6,394