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4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL ASSETS MANAGEMENT (cont’d)
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
(ii) Liquidity risk management
The Group adopts prudent liquidity risk management by maintaining sufficient cash and marketable securities to
finance their activities. The Group finances its operations through internally generated cash flows.
(iii) Interest rate risk management
The Group’s exposure to changes in interest rates relates primarily to interest-earning financial assets and
interest-bearing financial liabilities. Interest rate risk is managed by the Group on an ongoing basis with the primary
objective of limiting the extent to which net interest expense could be affected by an adverse movement in interest
rates. The Group does not use derivative financial instruments to hedge against such risk exposure. The related
interest rates for interest-earning financial assets and interest-bearing financial liabilities are as disclosed in Notes 6,
10, 13 and 15 respectively.
Liquidity and interest risk analyses
Non-derivative financial assets
The following table details the expected maturity for non-derivative financial assets. The inclusion of information
on non-derivative financial assets is necessary in order to understand the Group’s liquidity risk management as
the Group’s liquidity risk is managed on a net asset and liability basis. The tables below have been drawn up based
on the undiscounted contractual maturities of the financial assets including interest that will be earned on those
assets except where the Group and the Co-operative anticipates that the cash flow will occur in a different
period. The adjustment column represents the reasonably possible future cash flows attributable to the instrument
included in the maturity analysis which are not included in the carrying amount of the financial asset on the
statement of financial position.
