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The group is exposed to credit risk, liquidity risk and market risk by use of financial instruments.    
Credit risk              
Credit risk is risk for financial loss if a counterpart to a financial instrument does not manage to fulfil its obligations under the contract. There are attached credit risk to the group's receivables. Receivables are mainly towards affiliated ship owning companies included using the equity method of accounting. As manager for these companies, we have a good view of their financial standing, and the credit risk is considered minimal.    
Liquidity risk              
Liquidity risk is the risk for the group not being able to fulfil its financial obligations as they fall due. Shipping is a cyclical business, and the group has therefore chosen to be well capitalized, and have a significant cash position. As of 31.12.2015 the liquidity reserves amount to 9.5 % of the total balance sheet, while current liabilities together with liability to pay equity to affiliated companies amount to 18.4 % of the balance sheet. The liquidity risk is considered acceptable.    
Market risk              
Market risk is risk for changes in market prices, such as exchange rates on currency, interest rates and share prices, influence on income or value of financial instruments. There is attached financial market risk to bank deposits (exchange rate) and loans (exchange rate and interest rates). In addition the group is exposed to market risk related to mortgage loans in the ship owning companies included using the equity method of accounting (interest rates). The groups activities are mainly USD based, and deposits are to a large extent held in USD to reduce exchange rate risk. The group is mainly exposed to interest rate risk through mortgage loan in the ship owning companies. These loans are priced at floating LIBOR rate + margin. Interest rate exposure is actively handled, and parts of the loans are secured by fixed interest rate contracts to reduce interest rate risk. Due to a conservative strategy regarding financial instruments, and active handling of market risk, we are of the opinion that the groups market risk is satisfactory seen in relation to the balance sheet.    
Asset management              
The board's goal is to keep a sufficient capital base, to maintain confidence from investors, creditors and the market in general, and to develop the business activity. The Board considers any investments in financial instruments continuously. The Group currently has no investments in financial instruments with the exception of treasury shares. Capital return is monitored by the board. The group trade in its own shares on a limited basis. The purpose is to offer its employees shares in the company at a discounted rate. There has not been made any changes in how asset management is approached during the year. None of the group's companies is subordinated external capital requirements.    
FINANCIAL INSTRUMENTS 31/12/2014 31/12/2013    
  Booked value Fair value (Level 1) Booked value Fair value (Level 1)    
Financial assets held at fair value through profit or loss    
Equity securities 0 0 0 0    
Options 0 0 0 0    
Loan and receivables 0 0 0 0    
Long term loans 0 0 0 0    
Total 0 0 0 0    
The table above analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
– Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
– Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (Level 2).
– Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (Level 3).
For bank deposits, receivables and account payable the groups best estimate as per 31.12. is that book value is equal to fair value.    
Change in exchange rates Value change      
Bank deposits 10 % increase of exchange rates 12 179      
10 % reduction of exchange rates -12 179      
Loans 10 % increase of exchange rates            
10 % reduction of exchange rates     0      
Change of interest rates Effect on profit or loss      
Loans 100 basis points increase of interest rates     0      
100 basis points reduction of interest rates     0      
Mortgage loans on ships in companies included using the equity method of accounting 100 basis points increase of interest rates 12 321      
100 basis points reduction of interest rates -12 321      
Effect of change of interest rates for bank deposits is evaluated insignificant, and there is not made a sensitivity analysis.    
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