annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
99
26. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont’d)
(ii)
Liquidity and cash flow risk (Cont’d)
On demand
or within
One to
Over
31 December 2014
one year
five years
five years
Total
Company
RMB’000
RMB’000
RMB’000
RMB’000
Financial liabilities
Trade and other payables
1,689
–
–
1,689
31 December 2013
Group
Financial liabilities
Trade and other payables
127,520
–
–
127,520
Borrowings
10,000
–
–
10,000
137,520
–
–
137,520
Company
Financial liabilities
Trade and other payables
2,602
–
–
2,602
(iii)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the financial instruments of the Group
would fluctuate because of changes in market interest rates.
The exposure of the Group to interest rate risk arises primarily from its borrowing and cash at banks. The
fixed rate borrowing and cash at banks of the Group are exposed to a risk of changes in their fair values due
to changes in interest rates, if measured at fair value. The fixed rate borrowing and cash at bank of the Group
are exposed to a risk of change in cash flows due to changes in interest rates. Short term receivables and
payables are not exposed to interest rate risk. There is no formal hedging policy with respect to interest rate
exposure.
The following tables set out the carrying amounts, the effective interest rates as at the end of the reporting
period and the remaining maturities of the financial instruments of the Group that are exposed to interest rate
risk:
Interest
Within
rate
1 year
Total
Note
% RMB’000
RMB’000
At 31 December 2014
Fixed rate
Borrowings
17
5.66
10,000
10,000
Floating rate
Cash at bank
12
0.35
517,828
517,828
