f
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
26 FINANCIAL RISK MANAGEMENT AND FAIR VALUES OF FINANCIAL INSTRUMENTS
(Continued)
(b)
Liquidity risk
The treasury functions of the Group is centralised at the head office. Individual operating entities within the Group are responsible for their own cash management, including the short term investment of cash surpluses and the raising of loan to cover expected cash demands, subject to approval by the Company's board when the borrowings exceed certain predetermined levels of authority. The Group's policy is to regularly monitor its liquidity requirements, to ensure that it maintains sufficient reserves of cash from major financial institutions to meet its liquidity requirements in
the short and longer term.
The following table shows the remaining contractual maturities at the end of the reporting period of the Group's non-derivative financial liabilities, which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates at the end of the reporting period) and the earliest date the Group can be required to pay:
2017
2016
Contractual undiscounted cash outflow
Contractual undiscounted cash outflow
More than More than
Morethan More than
Within
1 year
2 years
Carrying
Wahin
1 year
2 years
Carrying
1 year
but less
but less
More
amount
1 year
but less
but less
More
́amount...
or on
than
than
than
at 31
or on
than
than
than
at 31
demand
2 years
5 years
5 years
Total December
demand
2 years
5 years
5 years
Total December
HK$'000
HK$'000 HK$'000
HK$'000 HK$'000
HK$'000
HKS000
HK$ 600
HK$000
HK$'000
HK$'000
HKS ODO
Trade and other payables 732,577 6,842
2,341
1,560 743,320
743,320
618,253
6,815
2,891
1,747
629,706
629,706
(c)
Currency risk
The Group has no significant exposure to foreign currency risk given its large asset base and operational cash flow are primarily denominated in Hong Kong dollars.
(d)
Equity price risk
The Group is exposed to equity price change arising from equity investments classified as available-for-sale securities (see note 17) and financial assets designated at fair value through profit or loss (see note 21). All of these investments are listed and have been disposed of during the year ended 31 December 2017.
Listed investments held in the available-for-sale securities portfolio have been chosen based on their longer term growth potential and are monitored regularly for performance against expectations.
Financial assets designated at fair value through profit or loss are subject to changes in market prices. The exposure to price changes is managed by closely monitoring the changes in market conditions that may have an impact on the market prices or factor affecting the value of these financial assets.
143
Hong Kong Ferry (Holdings) Company Limited Annual Report 2017
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