SUN YAT SEN NANYANG MEMORIAL HALL COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

8. SHARE OF OPERATING EXPENSES

In accordance with the Memorandum of Understanding between the Company and National Heritage Board dated 11 March 2009, these expenses are related to the Company’s 1% share of the recurrent operating costs of the Sun Yat Sen Nanyang Memorial Hall.

9. INCOME TAX

The Company, which is registered as a Charity under the Charities Act, is exempted from income tax under Section 13(1)(zm) of the Income Tax Act.

10.

Party Transactions

11.

Related entities

Related entities refer to entities where the Company’s directors are either the directors or members of the entities.

Financial Risk Management Objectives And Policies

The Company is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risks include liquidity risk and credit risk. The board of directors reviews and agrees on policies and procedures for the management of these risks, which are executed by the management.

The following provides details regarding the Company’s exposure to the above-mentioned financial risks and the objectives, policies and processes for the management of these risks.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulties in meeting short-term obligations due to shortage of funds. The Company’s exposure to liquidity risk arises primarily from the general funding of the Company’s business activities. The Company relies on Singapore Chinese Chamber of Commerce Foundation for continuing financial support.