15 Financial Risk Management i. Financial Risk Management Policies This note presents information about the Group’s exposure to financial 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 $ Noninterest Bearing $ 2022 Total $ Floating Interest Rate $ Fixed Interest Rate $ Noninterest Bearing $ 2021 Total $ Financial Assets - Cash and cash equivalents 353,634 – – 353,634 5,729,496 – – 5,729,496 - Trade and other receivables – – 131,568 131,568 – – 220,704 220,704 - Other assets 185,274 – – 185,274 125,044 – – 125,044 Total Financial Assets 538,908 – 131,568 670,476 5,854,540 – 220,704 6,075,244 Financial Liabilities - Trade and other payables – – 377,255 377,255 – – 578,077 578,077 - Borrowings – 55,573 – 55,573 – 17,227 – 17,227 Total Financial Liabilities – 55,573 377,255 432,828 – 17,227 578,077 595,304 Net Financial Assets/ (Liabilities) 538,908 (55,573) (245,687) 237,648 5,854,540 (17,227) (357,373) 5,479,940 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, with 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. Notes to the Consolidated Financial Statements for the year ended 31 December 2022 Siren Gold Limited 68
RkJQdWJsaXNoZXIy MjE2NDg3