HSRC Integrated Annual Report 2018/2019

136 / HSRC INTEGRATED ANNUAL REPORT 2018/19 PART E: ANNUAL FINANCIAL STATEMENTS 30.4 Liquidity Risk The HSRC manages liquidity risk through proper management of working capital, capital expenditure, actual versus forecast cash flows and its cash management policy. In addition adequate reserves and liquid resources are maintained. Budgets are prepared annually and analysed monthly against performance to ensure liquidity risks are monitored. 30.5 Market Risk The HSRC has limited exposure to market risk. 30.6 Fair Values The HSRC’s financial instruments consist mainly of cash and cash equivalents, payables and receivables. No financial instrument was carried at an amount in excess of its fair value and fair values could be reliably measured for all financial instruments. The following methods and assumptions are used to determine the fair value of each class of financial instruments: 30.6.1 Cash and Cash Equivalents The carrying amount of cash and cash equivalents and held-to-maturity financial assets approximates fair value due to the relatively short to medium term maturity of these financial assets. 30.6.2 Other Receivables from Exchange Transactions The carrying amount of other receivables from exchange transactions approximates fair value due to the relatively short-term maturity of these financial assets. NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019 (Continued)