Page 94 - Stellar IAR2015

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (CONTINUED)31. RISK MANAGEMENT (Continued)Price riskPrice risk arises from the uncertainty of future prices of investments held by the Group. The Group is therefore exposed to price risk through movements in the fair values of the underlying investments. Where investments have been valued using quoted market prices, the fair value is dependent on stock exchange movements resulting from interest rates, sentiment, currency and other factors (whether speci c to the investment or those a ecting the market as a whole).20152015The table below illustrates the Company’s exposure to price risk:R’000E ect of a 5% increase in prices Torre Industries LtdMining Restoration Investments Ltd Tellumat (Pty) LtdCadiz Holdings LtdIntegrated Equipment Rentals (Pty) Ltd Praxis Financial Services (Pty) LtdR’000E ect of a 5% decrease in prices Torre Industries LtdMining Restoration Investments Ltd Tellumat (Pty) LtdCadiz Holdings LtdIntegrated Equipment Rentals (Pty) Ltd Praxis Financial Services (Pty) LtdForeign currency riskGroupCompany20142014- - - - - - -2014- - - - - - -GroupCompany2014Presently the Group does not enter into transactions denominated in foreign currencies and therefore is not exposed to exchange rate uctuations.Liquidity riskLiquidity risk is the risk that the Group will not be able to meet its nancial obligations as they fall due. The Group manages this risk by maintaining adequate cash reserves and through continuous monitoring of forecast and actual cash ows. The Group, excluding the discontinued operations, had no short-term facilities in the current or prior period.90 | STELLAR CAPITAL PARTNERS45 042 701 5 006 6 720 - -2015(45 042) (701) (5 006) (6 720) - -- 16 - - - -- 16 - - - --45 042 701 5 006 6 720 - -57 46957 4692015(45 042) (701) (5 006) (6 720) - -(57 469)-(57 469)