NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT For the three months ended 31 March 2013 4. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Risk exposures and responses  Our principal financial instruments comprise receivables, payables, bank loans and overdrafts, finance leases, cash and short-term deposits and  derivatives�  We manage our exposure to key financial risks, including interest rate, commodity and foreign currency risk in accordance with our financial risk  management policy� The objective of the policy is to support the delivery of the Group’s financial targets while protecting future financial security�  From time to time we enter into commodity and forward currency contract positions where it is perceived that market conditions are such that it  is considered prudent to enter into these transactions� Limited delegations will be reviewed by the Risk and Compliance Committee and approved  by the Board� These delegations are subject to tight profit/loss limits and reviews that are provided on a daily basis to senior management� We  also apply Value at Risk limits and stress tests on a daily basis to limit the risk that positions would move over the stress ranges beyond the limits  approved by the Board� We enter into various derivative transactions that include interest rate swaps, commodity hedges and forward currency contracts� The purpose of  these transactions is to manage the potential volatility of outcomes arising from our operations and our sources of finance� Derivatives relating to  forward currency contracts and interest rate swaps provide economic hedges and may qualify for hedge accounting and are based on limits set by  the Board� The main risks arising from our financial instruments are interest rate risk, commodity price risk, foreign currency risk, credit risk and  liquidity risk�  We use different methods to measure and manage the different types of risks to which we are exposed� These include monitoring levels of  exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rate, foreign exchange and commodity  prices� Ageing analyses and monitoring of specific credit allowances are undertaken to manage credit risk� Liquidity risk is monitored through the  development of rolling cash flow forecasts�  We have a policy whereby we will forward sell a significant proportion of our feedlot cattle sales for a period of up to six months� The majority of our revenue is received in Australian dollars, although the prices received are influenced by movements in exchange rates,  particularly that of the US dollar, Japanese yen, and Euro relative to the Australian dollar� The Board reviews and agrees policies for managing each of these risks as summarised below�  Primary responsibility for identification and control of financial risks during the year rested with the Risk and Compliance Committee under the  authority of the Board� The Board reviews and agrees policies for managing each of the risks identified below, including the setting of limits for  hedging cover of commodity price risk, foreign currency and interest rate risk, credit allowances, and future cash flow forecast projections�  At the reporting date, we had the following mix of financial assets and liabilities exposed to Australian variable interest rate risk that are not  designated in cash flow hedges:  (i) Interest rate risk 31 Mar  2013  $000 31 Dec  2012  $000 31 Mar 2012  $000  ( reviewed) Financial Assets Cash assets 11,248 22,362 14,733 11,248 22,362 14,733 Financial Liabilities Syndicate loan facility: $400,000,000 bank loan (200,000) (200,000) (280,000) Interest rate swaps (4,650) (6,079) (1,674) (204,650) (206,079) (281,674) Net exposure (193,402) (183,717) (266,941) 68 Australian Agricultural Company Limited