CCS Annual Report 2015-2016

NOTES TO FINANCIAL STATEMENTS

31 MARCH 2016

FINANCIAL RISK MANAGEMENT POLICIES AND OBJECTIVES

The Commission is exposed to financial risk arising from its operations which include interest rate risk, credit

risk and liquidity risk. The Commission has policies and guidelines, which set out its general risk management

framework as discussed below.

There has been no change to the Commission’s exposure to these financial risks or themanner inwhich itmanages

and measures the risk.

i. Interest rate risk management

Surplus funds in the Commission are placed with

Accountant-General’s Department as disclosed

in Note 6. Interest rate sensitivity analysis has not

been presented as management do not expect any

reasonable possible changes in interest rates to have

a significant impact on the Commission’s operations

and cash flows.

ii. Credit risk management

Credit risk, or the risk of counterparties defaulting is

controlled by the application of regular monitoring

procedures. The extent of the Commission’s credit

exposure is represented by the aggregate balance of

cash and bank balances and receivables.

iii. Liquidity risk management

Liquidity risk arises in the general funding of the

Commission’s operating activities. It includes the

risks of not being able to fund operating activities

in a timely manner. To manage liquidity risk,

the Commission places surplus funds with the

Accountant-General’s Department which are readily

available where required.

iv. Fair values of financial assets and

financial liabilities

The carrying amounts of financial assets and

financial liabilities as reported in the financial

statements approximate their respective fair values

due to the relatively short-term maturity of these

financial instruments.

v. Capital risk management policies

and objectives

The Commission manages its capital base in

consideration of current economic conditions and

its plan for the year in concern. The request for grants

fromtheMinistry of Trade and Industry (“MTI”) ismade

though the annual budget exercise. The Commission

is not exposed to any external capital requirements.

However, it is required to comply with FCM No.

26/2008 under the Capital Management Framework

for Statutory Boards.

The capital structure of the Commission consists

of accumulated surplus and share capital. The

Commission’s capital structure remains unchanged

since 31 March 2015.

FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISKS MANAGEMENT

(CONT’D)

FINANCIAL STATEMENTS

CCS ANNUAL REPORT 2015-2016