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## 37. Financing Arrangements 

Companies in the consolidated entity have access to the following financing facilities with a financial institution: 

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The remaining facilities are subject to annual review. The bank reserves the right to withdraw the facilities if in the opinion of the bank, there have been material adverse changes in the financial condition or operations of the business. The company can cancel the facilities at any review date. 

For additional financing facilities not disclosed above, refer to Notes 18 and 33(b) for details in relation to loans by directors to Derni Pty Limited (a wholly owned subsidiary of Harvey Norman Holdings Limited) and other financing. 

## 38. Financial Instruments 

(a) Objectives for Holding Derivative Financial Instruments 

The consolidated entity uses derivative financial instruments to manage specifically identified interest rate and foreign currency risks. The purposes for which specific derivative instruments are used are as follows: 

Forward exchange contracts are purchased to hedge the Australian dollar value of purchases of products denominated in foreign currency. 

Interest rate swap agreements are used to convert floating rate exposures on certain debt to fixed rates. These swaps entitle the consolidated entity to receive, or oblige it to pay, the amounts, if any, by which actual interest payments on nominated loan amounts exceed or fall below specified interest amounts. 

