8 REVENUE
2014
2013
$
$
Management fee from a related entity
23,651
–
9 OTHER OPERATING EXPENSES
2014
2013
$
$
Secretarial fees
48,100
3,950
Tax fees
3,800
–
Accounting fees
2,400
–
Audit fees
2,248
2,560
Other professional fees
14,932
1,683
71,480
8,193
10 TAX EXPENSE
Reconciliation of effective tax rate
2014
2013
$
$
Loss before tax
(47,829)
(8,193)
Tax calculated using Singapore tax rate of 17%
(8,131)
(1,393)
Non-deductible expenses
8,131
1,393
–
–
11 FINANCIAL RISK MANAGEMENT
Risk management is integral to the whole business of the Company. The Company has a system of controls in place to
create an acceptable balance between the cost of risks occurring and the cost of managing the risks. The management
continually monitors the Company’s risk management process to ensure that an appropriate balance between risk and
control is achieved. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Company’s activities.
The Board of Directors oversees how management monitors compliance with the Company’s risk management policies and
procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
Exposure to credit and liquidity risks arises in the normal course of the Company’s business. These risks are limited by the
Company’s financial management policies and practices described below.
Credit risk
At the reporting date, the amount due from related entity represents a significant portion of the financial assets. The
maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial
position.
NOTES TO THE FINANCIAL STATEMENTS
14
ANNUAL REPORT 2014
