Notes to the Consolidated Financial Statements for the Year Ended 30 June 2014 NOTE 19: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Risk Exposures and Responses Interest rate risk Maturity analysis of financial assets and liabilities based on management’s expectation Page 36 Benitec Biopharma Ltd  Annual Report 2014 The table below reflects management’s expectation of the maturity of financial assets and liabilities.  These assets are considered in the context of the Group’s overall liquidity risk. The Group has established a risk reporting process overseen by the  board which monitors existing financial assets and liabilities and provides information to enable effective risk management. The Board regularly  evaluates managements rolling forecasts of liquidity which includes assessments of cash income and outgoings. The table below reflects all contractually fixed pay-offs and receivables for settlement, repayments and interest resulting from recognised financial  assets and liabilities as at 30 June 2014. ash flows for financial assets and liabilities with fixed amount or timing are presented with their  respective discounted cash flows for the respective upcoming fiscal years. The remaining contractual maturities of the Group’s financial liabilities are: The Group’s objective is to obtain revenue from commercialisation and to continue to access funding markets. The Group has a pipeline of  programs to take its research and development to the clinic and potentially originate licensing transactions with pharmaceutical companies. Trade payables and other financial liabilities originate from the financing of the ongoing research and development programs in addition to the  operations of the business generally. Liquidity risk At 30 June 2014, if interest rates had moved, as illustrated in the table below, with all other variables held constant, the judgment of reasonably  possible movements in post-tax profit and equity would have been as follows: The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date: The policy is to analyse the Company’s interest rate exposure across the Groups financial assets and liabilities. Consideration is given to the return  on funds invested, alternative financing, the mix of fixed and variable interest rates and hedging positions. The Group currently has short term  deposits at variable interest rates. The average interest rate applying to cash deposits in the year was 3.67% (2013 4.00%). The Group generates income from interest on surplus funds. At reporting date, the Group had the following mix of financial assets and liabilities  exposed to Australian variable interest rate risk that are not designated in cash flow hedges: The main risks arising from the financial instruments are interest rate risk, liquidity risk, foreign currency risk and credit risk. The Board reviews  and agrees policies for managing each of these risks and they are summarised below. The Group’s principal financial instruments comprise receivables, payables, cash and short-term deposits. The Group manages its exposure to key  financial risks, including interest rate and currency risk in accordance with the Company financial risk management policy. The objective of the  policy is to protect the assets and provide a solid return. 2014 2013 $ $ Financial Assets  Cash and cash equivalents  31,359,199  1,587,299 Financial Liabilities  -  - Net Exposure  31,359,199  1,587,299 Post Tax Result  Equity  Higher/ (Lower)  Higher/ (Lower) 2014 2013 2014 2013 $ $ $ $ +1% (100 basis points)  143,625  12,797  143,625  12,797 -0.5% (50 basis points)  (71,812)  (6,399)  (71,812)  (6,399) 2014 2013 $ $ 6 months or less  788,169  1,011,733 6-12 months  -  - 1-5 years  -  - Over 5 years  -  - 788,169 1,011,733