Significant Risks

12 Months Ended

Aug. 31, 2020

10.

SIGNIFICANT RISKS

Credit risk

Credit risk is one of the most significant risks for the Company’s business and arise principally in lending activities.

Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. The Company manages credit risk through in-house research and analysis of the economy primarily in Hong Kong and the underlying obligors and transaction structures. To minimize credit risk, the Company requires collateral in the form of rights to cash, securities or property and equipment.

The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers.

Liquidity risk

The Company is also exposed to liquidity risk which is risk that it is unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Company will turn to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage.

Concentration risk

For all the periods presented, all of the Company’s assets were located in Hong Kong.

One customer accounted for all of the Company’s income from property agency services for the year ended August 31, 2020. Two customers accounted for all (81% and 19%) of the Company’s income from property agency services for the year ended August 31, 2019.

Four customers accounted for all (40%, 30%, 20% and 10%) of the Company’s income from mortgage referral services for the year ended August 31, 2020. One customer accounted for all of the Company’s income from mortgage referral services for the year ended August 31, 2019.

There was no loans receivable and accounts receivable as of August 31, 2020. One customer accounted for all the loans receivable as of August 31, 2019 and another one customer accounted for all the accounts receivable as of August 31, 2019.

TEMIR CORP. 10-K