34.
FINANCIAL RISK MANAGEMENT (CONTINUED)
(b)
Liquidity risk (continued)
The table below shows the contractual expiry by maturity of the Group and Company’s
contingent liabilities and commitments. The maximum amount of the financial guarantee
contracts are allocated to the earliest period in which the guarantee could be called.
Within
one year
Two to
five years
Total
$’000
$’000
$’000
Group
As at 31 December 2015
Financial guarantees
–
–
–
As at 31 December 2014
Financial guarantees
1,768
–
1,768
Within
one year
Two to
five years
Total
$’000
$’000
$’000
Company
As at 31 December 2015
Financial guarantees
–
–
–
As at 31 December 2014
Financial guarantees
1,768
–
1,768
(c)
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the
Company’s financial instruments will fluctuate because of changes in market interest rates.
The Group’s and the Company’s exposure to interest rate risk arises primarily from finance
lease payables and bank borrowings. All of the Group’s and the Company’s financial assets
and liabilities at floating rates are contractually re-priced at intervals of less than 3 months
from the balance sheet date.
The Group’s and Company’s exposure to interest rate risk relate primarily to interest-bearing
fixed deposits and debt obligations with financial institutions.
123
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
