Page 57 -

Notes to the Consolidated Financial Statements

31st March 2015

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued)

(c) Liquidity risk

Prudent liquidity risk management includes maintaining sufficient cash, the availability of
funding from an adequate amount of committed credit facilities and the ability to close out
market positions.

The Group maintains its liquidity mainly through funding generated from its daily operations
and maintaining funding availability under committed credit facilities.

Banking facilities have been put in place for contingency purposes. As at 31st March 2015,
the Group’s total available banking facilities amounted to approximately HK$1,150 million
(2014: HK$1,596 million), of which approximately HK$52 million (2014: HK$130 million) has
been utilised.
The table below analyses the Group’s and the Company’s financial liabilities that will be
settled into relevant maturity groupings based on the remaining period at the balance sheet
to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows.

Within In the Carrying
one year second year Total amount
HK$’000 HK$’000 HK$’000 HK$’000
Group
At 31st March 2014
Borrowings 81,529 50,984 132,513 130,000
Trade and other payables 575,843 – 575,843 575,843

At 31st March 2015
Borrowings and trust receipt loan 52,608 – 52,608 51,654
Trade and other payables 512,072 – 512,072 512,072

Company
At 31st March 2014
Other payables 198 – 198 198

At 31st March 2015
Other payables 198 – 198 198

3.2 Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as
a going concern in order to provide returns for shareholders and benefits for other stakeholders
and to maintain an optimal capital structure to reduce the cost of capital.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2015 55