Old Chang Kee Ltd - Annual Report 2016 - page 131

129
A N N U A L R E P O R T 2 0 1 6
For the Financial Year Ended 31 March 2016
NOTES TO THE
FINANCIAL STATEMENTS
33. Financial risk management objectives and policies (cont’d)
(b) Liquidity risk (cont’d)
Company 1 year or less 1 to 5 years Over 5 years Total
$’000 $’000 $’000 $’000
2015
Financial assets:
Amount due from subsidiaries 3,570 – – 3,570
Amount due from associates – – – –
Cash and bank balances 10,508 – – 10,508
Available-for-sale financial assets – – 273 273
Total undiscounted financial assets 14,078 – 273 14,351
Financial liabilities:
Trade and other payables 1,329 – – 1,329
Total undiscounted financial liabilities 1,329 – – 1,329
Total net undiscounted financial assets 12,749 – 273 13,022
(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s financial instruments will fluctuate because of changes
in market interest rates. The Company obtains financing through bank loans and finance 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 financial assets and
liabilities at floating rates are contractually repriced at intervals of less than 6 months (2015: less than 6 months) from the end of the
reporting period.