HKSI Institute AR2023

73 HKSI Institute Annual Report 2023 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (Expressed in Hong Kong dollars unless otherwise indicated) 17 GENERAL FUND AND EXCHANGE RESERVE (continued) (b) Exchange reserve 2023 2022 Exchange reserve as at 1 April $ 191,248 $ 56,579 Exchange difference on translation of financial statements of overseas subsidiary (380,634) 134,669 Exchange reserve as at 31 March $ (189,386) $ 191,248 The exchange reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations. The reserve is dealt with in accordance with the accounting policies set out in note 2(f). 18 INVESTMENTS IN SUBSIDIARIES The following list contains only the particulars of subsidiaries which principally affected the results, assets or liabilities of the Group. The class of shares held is ordinary unless otherwise stated. Percentage of ownership interest Name of company Place of incorporation Group’s effective interest Held by the Company Held by a subsidiary Principal activity Hong Kong Securities Institute (China) Limited Hong Kong 100% 100% – Investment holding 深圳匯柏信息咨詢有限公司 People’s Republic of China 100% – 100% Provision of consultancy services 19 FINANCIAL RISK MANAGEMENT AND FAIR VALUES Exposure to credit, liquidity, interest rate and foreign currency risks arises in the normal course of the Group’s and the Institute’s business. The Group’s and the Institute’s exposure to these risks and the financial risk management policies and practices used by the Group and the Institute to manage these risks are described below. (a) Credit risk The Group and the Institute do not hold any significant financial assets other than cash and cash equivalents and time deposits with banks. Cash and cash equivalents and time deposits held by the Group and the Institute are deposited with reputable financial institutions. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.