Page 114 - CA Sri Lanka Integrated Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS

31.1.1 Maximum exposure to credit risk
The maximum risk exposure of financial assets which are generally subject to credit risk are equal to their carrying amounts.
Carrying Value as at 31 December 2023 2022
Rs.'000 Rs.'000
Fixed deposits 278,360 87,544
Treasury bonds 1,681,519 1,438,665
Loans and receivables 213,841 226,678
Treasury bill re-purchase agreements 49,017 80,029
Maximum exposure to credit risk 2,222,737 1,832,916

31.1.2 Risk response to credit risk
To minimise the credit risk fixed deposits are held with state owned banking institutions.
Carrying Value as at 31 December 2023 2022
Rs.'000 Rs.'000
Government securities and related institutions
Treasury Bonds 1,681,519 1,438,665
Reverse repurchase agreements 49,017 80,029
Fixed deposits 278,360 87,544

Others
Loans and receivables 213,841 226,678
Maximum exposure to credit risk 2,222,737 1,832,916

31.2 Liquidity risk
Liquidity risk is the risk that the Institute may not have sufficient liquid funds to meet its obligations when they fall due.
The Institute is managing the liquidity risk by ensuring that there will always be sufficient liquidity to meet its liabilities when due without
incurring unacceptable damages to the Institute’s reputation.
Maturity analysis of financial assets and liabilities
Description On Demand Less than 3 to 12 2 to 3 More than Total
3 months months years 3 years
Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000 Rs.’000
Financial assets
Receivables 28,135 167,046 - - - 195,181
Loans and advances to staff - 2,244 5,889 10,249 278 18,660
Fixed deposits - - 128,360 - 150,000 278,360
Treasury Bonds - - - - 1,681,519 1,681,519
Cash and cash equivalents 117,589 - - - - 117,589
145,724 169,290 134,249 10,249 1,831,797 2,291,309

Financial liabilities
Lease liability - (6,910) (17,160) (35,808) - (59,878)
Payables (50,662) - - - - (50,662)
(50,662) (6,910) (17,160) (35,808) - (110,540)

Net financial assets 95,062 162,380 117,089 (25,559) 1,831,797 2,180,769
31.3 Market risk
Market risk is the risk that changes in interest rates which will affect the Institute’s income or the value of its holding of financial instruments.
The Institute manages and controls the market risk exposure within acceptable parameters, while optimising the return.
The Institute’s market risk exposure is minimal.

112 CA Sri Lanka Integrated Annual Report 2023