41 URBAN DEVELOPMENT CORPORATION Notes to the Non-Consolidated Financial Statements (Continued) Year ended March 31, 2010
Financial instruments (cont’d) (a)
Financial risk management (cont’d): (iii)
Liquidity risk (cont’d): Undiscounted cash flows of financial/liabilities (cont’d) Less than 1 month $’000 Interest bearing Non-interest bearing
1 to 3 months $’000
2009 3 to 12 months $’000
1 to 5 years $’000
Fair value disclosures: The fair values of cash and short-term investments, accounts receivable, short-term loan, accounts payable and other current liabilities, and due from/to related companies are assumed to approximate to their carrying value, due to their short-term nature or the ability to obtain set-offs in the amounts disclosed. The corporation had no financial instruments which were carried at fair value.
Capital management: Management objectives when managing capital are to safeguard the corporation’s ability to continue as a going concern in order to provide returns for the corporation’s stakeholders and to maintain an optimal capital structure to reduce the cost of capital. There were no changes to the corporation’s approach to capital management during the year.
Commitments and contingencies (a)
At March 31, 2010, management estimates aggregate cost of $4,171 million (2009: $645 million) to complete approved and initiated projects.
The corporation is contingently liable in respect of legal claims arising in the ordinary course of business. These claims are at various stages of conclusion. To the extent that recommendations have been made by the attorneys, adequate provision has been made in these financial statements for these contingencies. Where the outcome cannot be reliably estimated, or where the corporation is confident in its defence, no provision is made in the financial statements.
Operating lease arrangements Property rental income earned during the year by the corporation, aggregated $252 million (2009: $206 million).