CIPC Annual Report V1

Companies and Intellectual Property Commission Annual Financial Statements for the year ended 31 March 2021 Notes to the Annual Financial Statements

2021

2020

R '000

R '000

30. Patent Corporation Treaty (PCT) Trust Account

Funds held in trust to which the entity is not entitled, are accounted for separately and deposited into a separate bank account.

PCT creditors

1 091

176

Funds received from South African clients to be paid to the World Intellectual Property Organisation (WIPO) and the International Searching Authority (ISA).

Balance in the PCT bank account

1 091

176

31. Risk management

Financial risk management

The main risks arising from the CIPC’s financial instruments are credit risk, market risk and liquidity risk.

Financial assets which potentially subject the CIPC to concentrations of credit risk consist mainly of cash and cash equivalents. The entity’s cash and short-term deposits are placed with high quality financial institutions as well as the South African Reserve Bank. Credit risk with respect to trade receivables is limited, due to the fact that most of the entity’s revenue transactions are carried out on a pre-paid basis. The entity’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of the receivables. Accordingly the entity has no significant concentration of credit risk.

Liquidity risk

The CIPC’s risk to liquidity is a result of the funds available to cover future commitments. Taking into consideration the CIPC’s current funding structures and availability of cash resources, the CIPC regards this risk to be low.

March 2021

Carrying amount

Total cash flow Contracted cash flow within 1 year

Contractual cash flow 2-5 years

Payables from exchange transactions Payables from customer deposits received

26 693 121 374

26 693 121 374

26 693 121 374

- -

148 067

148 067

148 067

-

March 2020

Carrying amount

Total cash flow Contracted cash flow within 1 year

Contractual cash flow 2-5 years

Payables from exchange transactions Payables from customer deposits received

15 549 115 650

15 549 115 650

15 549 115 650

- -

131 199

131 199

131 199

-

32

COMPANIES AND INTELLECTUAL PROPERTY COMMISSION I Annual Report 2020/21

102