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Notes to the Consolidated Financial Statements


               31st March 2017


               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 2017,
                            the  Group’s  total  available  banking  facilities  amounted  to  approximately  HK$1,177  million
                            (2016: HK$1,314 million), of which approximately HK$175 million (2016: HK$233 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  from  the  balance  sheet  date  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 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
                            At 31st March 2017
                            Borrowings                        119,967    59,983       –     179,950    174,600
                            Trade and other payables          320,739       –         –     320,739    320,739

                   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.








         72    ALCO HOLDINGS LIMITED  ANNUAL REPORT 2017
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