Lenovo 2014 Annual Report Download - page 32

30 Lenovo Group Limited 2013/14 Annual Report
MANAGEMENT’S DISCUSSION & ANALYSIS
The Group is confident that all the facilities on hand can meet the funding requirements of the Group’s operations and
business development.
2014 2013
At March 31 US$’000 US$’000
Bank deposits and cash and cash equivalents 3,953 3,573
Less: total borrowings (455) (479)
3,498 3,094
The Group adopts a consistent hedging policy for business transactions to reduce the risk of currency fluctuation
arising from daily operations. At March 31, 2014, the Group had commitments in respect of outstanding forward
foreign exchange contracts amounting to US$6,513 million (2013: US$4,945 million).
The Group’s forward foreign exchange contracts are either used to hedge a percentage of future transactions which
are highly probable, or used as fair value hedges for identified assets and liabilities.
CONTINGENT LIABILITIES
The Group, in the ordinary course of its business, is involved in various claims, suits, investigations, and legal
proceedings that arise from time to time. Although the Group does not expect that the outcome in any of these
legal proceedings, individually or collectively, will have a material adverse effect on its financial position or results of
operations, litigation is inherently unpredictable. Therefore, the Group could incur judgments or enter into settlements
of claims that could adversely affect its operating results or cash flows in a particular period.
HUMAN RESOURCES
At March 31, 2014, the Group had a headcount of approximately 54,000 worldwide.
The Group implements remuneration policy, bonus and long-term incentive schemes with reference to the performance
of the Group and individual employees. The Group also provides benefits such as insurance, medical and retirement
funds to employees to sustain competitiveness of the Group.