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Notes to the Consolidated Financial Statements

31st March 2016

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 2016,
the Group’s total available banking facilities amounted to approximately HK$1,314 million
(2015: HK$1,150 million), of which approximately HK$233 million (2015: HK$52 million) has
been utilised.

The table below analyses the Group’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 In the third Carrying
one year second year to fifth year Total amount
HK$’000 HK$’000 HK$’000 HK$’000 HK$’000
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

At 31st March 2016
Borrowings 9,913 118,950 109,038 237,901 232,800
Trade and other payables 348,390 – – 348,390 348,390
Dividend payable 347,621 – – 347,621 347,621

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.

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend
paid to shareholders, raise or repay bank borrowings, issue new shares or sell assets to reduce
debt.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2016 53