Siren Gold Limited Annual Report 2020

16 Financial Risk Management i. Financial Risk Management Policies This note presents information about the Group’s exposure to each of the above risks, its objectives, policies and procedures for measuring and managing risk, and the management of capital. The Group’s financial instruments consist mainly of deposits with banks, short-term investments, and accounts payable and receivable. The Group does not speculate in the trading of derivative instruments. A summary of the Group’s Financial Assets and Liabilities is shown below: Floating Interest Rate $ Fixed Interest Rate $ Non- interest Bearing $ 2020 Total $ Floating Interest Rate $ Fixed Interest Rate $ Non- interest Bearing $ 2019 Total $ Financial Assets -  Cash and cash equivalents 8,801,581 - - 8,801,581 157,853 - - 157,853 -  Trade and other receivables - - 143,920 143,920 - - 479 479 -  Other assets 113,646 - - 113,646 - - - - Total Financial Assets 8,915,227 - 143,920 9,059,147 157,853 - 479 158,332 Financial Liabilities -  Trade and other payables - - 587,924 587,924 - - 158,298 158,298 -  Borrowings - 15,913 - 15,913 - - 1,937 1,937 Total Financial Liabilities - 15,913 587,924 603,837 - - 160,235 160,235 Net Financial Assets/ (Liabilities) 8,915,227 (15,913) (444,004) 8,455,310 157,853 - (159,756) (1,903) ii. Specific Financial Risk Exposures and Management The main risks the Group is exposed to through its financial instruments are credit risk, liquidity risk and market risk, consisting of interest rate, foreign currency risk and equity price risk. However, the sole material risk at the present stage of the Group is liquidity risk. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board adopts practices designed to identify significant areas of business risk and to effectively manage those risks in accordance with the Group’s risk profile. This includes assessing, monitoring and managing risks for the Group and setting appropriate risk limits and controls. The Group is not of a size nor are its affairs of such complexity to justify the establishment of a formal system for risk management and associated controls. Instead, the Board approves all expenditure, is intimately acquainted with all operations and discusses all relevant issues at the Board meetings. The operational and other compliance risk management have also been assessed and found to be operating efficiently and effectively. iii. Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. iv. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Notes to the Consolidated Financial Statements for the year ended 31 December 2020 Annual Report 2020 47