Sunrise Diamonds plc
Notes to the Financial Statements
20. Financial instruments — continued Surplus funds are placed with NatWest bank on a number of short-term treasury deposits at varying fixed rates of interest.
19 October 2009
At 30 September 2009, the Company held the following treasury deposits:
Interest rate risk The Company finances operations through equity fundraising and therefore does not carry borrowings.
United Kingdom Sterling
Fluctuating interest rates have the potential to affect the loss and equity of the Company in-so-far as they affect the interest paid on financial instruments held for the benefit of the Company. The directors do not consider the effects to be material to the reported loss or equity of the Company presented in the financial statements.
Credit risk The Company has exposure to credit risk through receivables such as VAT refunds, invoices issued to related
parties and its joint arrangements for management charges. The amounts outstanding from time to time are not material other than for VAT refunds which are considered by the directors to be low risk.
The Company has exposure to credit risk in respect of its cash deposits with NatWest bank and this exposure is considered by the directors to be low risk.