Annual Report 2016 | Page 76

27 Non-controlling Interests

At 31 March 131 82

28 Financial Assets and Liabilities

The Group ’ s financial assets and liabilities include cash , loans receivable , borrowings , derivative financial assets and liabilities , trade creditors and trade debtors . Borrowings as at 31 March 2016 represent bank term loans , private placement loan notes , finance lease obligations , index-linked debt and irredeemable debenture stock . The purpose of the Group ' s borrowings is to finance the Group ’ s operations . It is , and has been throughout the year and the previous year under review , the Group ’ s policy that no trading in financial instruments shall be undertaken . The Group ’ s policy in respect of cash , loans receivable and borrowings is to maintain flexibility with both fixed and floating interest rates and long and short-term debt while not exposing the Group to significant risk of market movements ( see below ). As at 31 March 2016 , derivative financial liabilities represent floating to fixed interest rate swaps used as cash flow hedges to reduce the Group ’ s risk to changes in LIBOR .

Interest Rate Risk Profile

The floating rate borrowings comprise sterling denominated short-term bank loans ( revolving credit facilities ) that bear interest at rates based on LIBOR . As at 31 March 2015 , these included £ 35,000,000 of loans that are floating rate but floating to fixed interest rate swaps had been entered into in respect of these loans that commence cash flows in October 2015 when these loans effectively became fixed rate when combined with these swaps and have been reported above as fixed rate as at 31 March 2016 . Fixed rate financial liabilities include fixed rate bank term loans of £ 15,763,000 ( 2015 : £ 15,763,000 ) and floating rate bank term loans with principal values of £ 85,000,000 ( 2015 : £ 46,500,000 ) that are effectively swapped to fixed rate by cash flow hedges using floating to fixed interest rate swaps where cash flows under the swaps have commenced . The Group ' s trade debtors and trade creditors are not subject to interest unless considered to be overdue .

For all financial assets and liabilities , the book values and fair values are not materially different , except for the £ 111,400,000 ( 2015 : £ 111,400,000 ) Retail Price Index-linked loan which had a book value at 31 March 2016 of £ 167,350,000 ( 2015 : £ 162,718,000 ), and a fair value of £ 267,360,000 ( 2015 : £ 287,735,000 ) and the £ 35,000,000 ( 2015 : £ 35,000,000 ) Retail Price Index-linked bond which had a book value at 31 March 2016 of £ 44,696,000 ( 2015 : £ 43,260,000 ) and a fair value of £ 46,701,000 ( 2015 : £ 47,642,000 ).

Borrowing Facilities The Group has various borrowing facilities available to it . The undrawn committed facilities available at 31 March 2016 were as follows :

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