HKSI Institute AR2023

HKSI Institute Annual Report 2023 74 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (Expressed in Hong Kong dollars unless otherwise indicated) 19 FINANCIAL RISK MANAGEMENT AND FAIR VALUES (continued) (b) Liquidity risk The Group’s policy is to regularly monitor its liquidity requirements and its compliance with lending covenants, to ensure that it maintains sufficient reserves of cash and readily realisable marketable securities and adequate committed lines of funding from major financial institutions and/or from the subsidiaries 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 financial liabilities, which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on rates current at the end of the reporting period) and the earliest date the Group can be required to pay: Contractual undiscounted cash outflow Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years More than 5 years Total Carrying amount at 31 March 2023 Accruals and other payables $ 2,720,092 $ – $ – $ – $ 2,720,092 $ 2,720,092 Amount due to HKSAR Government 1,721,241 – – – 1,721,241 1,721,241 Lease liabilities 4,151,640 4,219,300 13,710,860 13,804,680 35,886,480 30,500,989 $ 8,592,973 $ 4,219,300 $ 13,710,860 $ 13,804,680 $ 40,327,813 $ 34,942,322 2022 Accruals and other payables $ 3,965,217 $ – $ – $ – $ 3,965,217 $ 3,965,217 Amount due to HKSAR Government 4,559,568 – – – 4,559,568 4,559,568 Lease liabilities 4,459,005 4,151,640 22,802,400 8,932,440 40,345,485 33,653,358 $ 12,983,790 $ 4,151,640 $ 22,802,400 $ 8,932,440 $ 48,870,270 $ 42,178,143 The expected contractual cash flows, on an undiscounted basis, on those financial liabilities are similar to their respective carrying value at the reporting date. (c) Interest rate risk The Group’s and the Institute’s interest-bearing assets mainly comprise cash at bank, which matures, or reprices in the short term and time deposits with banks. As a result, the Group and the Institute are subject to limited exposure to fluctuations in the prevailing level of market interest rates. At 31 March 2023, it is estimated that a general increase of 100 basis points in interest rates, with all other variables held constant, would increase the Group and the Institute’s surplus and general fund by approximately HK$264,204 and HK$212,245 respectively (2022: HK$341,563 and HK$294,592) so far as the effect on interest- bearing financial assets is concerned.