notes to the
financial statements
31 December 2015
31.
Financial instruments: information on financial risks (cont’d)
Financial risk management (cont’d)
Liquidity risk – financial liabilities maturity analysis (cont’d)
It is expected that all the liabilities will be settled at their contractual maturity. The credit period taken to settle trade
payables is generally between 30 to 90 (2014: 30 to 90) days. Other payables are normally with no fixed terms and
therefore there is no maturity. In order to meet such cash commitments, the operating activities are expected to
generate sufficient cash inflows.
The following tables analyse the financial guarantee contracts based on the earliest dates in which the maximum
guaranteed amount could be drawn upon:
Due
less than
1 year
Due
within
2 – 5 years
Due
after
5 years
Total
$’000
$’000
$’000
$’000
Group
2015
Financial guarantee contracts
20,172
10,875
2,749
33,796
2014
Financial guarantee contracts
22,625
3,763
1,446
27,834
Company
2015
Financial guarantee contracts
18,732
10,875
2,749
32,356
2014
Financial guarantee contracts
20,920
3,763
1,446
26,129
As at the end of the reporting year, no claims on the financial guarantee contracts are expected.
Interest rate risk
The Group’s exposure to interest rate risk relates primarily to interest-earning financial assets and interest-bearing
financial liabilities. Interest rate risk is managed by the Group on an on-going basis with the primary objective of limiting
the extent to which net interest expense could be affected by an adverse movement in interest rates.
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