Gardens By the Bay 2019/2020

GARDENS BY THE BAY ANNUAL REPORT 2019/20 119 NOTES TO FINANCIAL STATEMENTS 31 March 2020 (b) Financial risk management policies and objectives The Company seeks to minimise the potential adverse impact arising from fluctuations in interest rates and the unpredictability of the financial markets. The Company does not trade in derivative financial instruments. The main areas of financial risk faced by the Company are as follows: • Interest rate risk management Interest rate risk refers to the risk faced by the Company as a result of fluctuation in interest rate. The Company’s exposure to changes in interest rates relates primarily to fixed deposits with short- term maturities. Interest rate sensitivity analysis has not been presented as management does not expect any reasonable possible changes in interest rates to have a material impact on the Company’s income or expenditure. • Credit risk management The Company develops and maintains its credit risk gradings to categorise exposures according to their degree of risk of default. The Company uses its own trading records to rate its major customers and other debtors. Cash is held with creditworthy institution and is subject to immaterial credit loss. The table below details the credit quality of the Company’s financial assets as well as maximum exposure to credit risk by credit risk rating grades: Note Internal credit rating 12-month or lifetime ECL Gross carrying amount Loss allowance Net carrying amount $ $ $ 2020 Trade receivables 8 (a) Lifetime ECL (Simplified approach) 1,475,988 - 1,475,988 Other receivables (excluding prepayments) 9a (b) 12m ECL 3,576,038 - 3,576,038 Government grant receivable 9b (b) 12m ECL 4,697,648 - 4,697,648 2019 Trade receivables 8 (a) Lifetime ECL (Simplified approach) 1,891,250 - 1,891,250 Other receivables (excluding prepayments) 9a (b) 12m ECL 2,726,867 - 2,726,867