Page 192 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
4 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED)
A description of the the the the various risks to which the the the the Group and the the the the Company are are exposed are are shown below as as well as as the the the the approach taken by management to control and mitigate those risks (a) Market risk Market risk risk is is is the the risk risk that the the fair value of of of future cash flows of of of a a a a a a a a a a a financial instrument will fluctuate because of of of changes fin in in market prices Market risk risk to which the the Group and the the Company are exposed comprise three types of risk: interest rate risk risk risk risk foreign currency risk risk risk risk and and equity price risk risk risk risk Financial instruments affected by market risk risk risk risk include loans and and borrowings non-current financial assets and and trade and and other payables The sensitivity analysis in in the the following sections relate to the the position as at at June 30 2020
and 2019 (i) Interest rate risk Interest rate risk risk is is is the the risk risk that the the fair value or future cash flows of of a a a a a a a a a a a financial instrument will fluctuate because of of changes in in in in market market interest interest rates rates The Group’s and the the Company’s exposure to the the risk of changes in in in in market market interest interest rates rates relates primarily to the the Group’s and the the Company’s debt obligations with floating interest rates The Group’s and and the the Company’s income and and operating cash flows are subject to the the risks of changes in in in in market interest rates The Group’s and and the Company’s policy is is to manage its interest risk using a a a a a a a a a mix of fixed and and variable rate debts Interest rate sensitivity The following table demonstrates through the the the the impact on on floating rate rate borrowings the the the the sensitivity of the the the the Group’s and the the the the Company’s profit before tax and equity to a a a a a a a a a a a reasonable possible change in in interest rates with all other variables held constant 2020
Rs’000 4 750
(2 375)
2020
Rs’000 4 621
(2 310)
Increase/(decrease) in in basis point
+ 50
- 25 (ii) Currency profile
Financial assets THE GROUP
THE GROUP
2019 Rs’000 5 062 (2 531)
2019 Rs’000 THE COMPANY
2019 Rs’000 4 4 664 (2 332)
THE COMPANY
2019 Rs’000 135 9 606 493 965 - - 503 706
2020
Rs’000 7 7 676
4 789
387 051
45 849
6 191
451 556
2020
Rs’000 11 17 530 736
- - 530 764
Euro 663
United States Dollars Mauritian Rupees Malagasy Ariary
Sri Lanka Rupees 9 612 474 734 23 213 10 254 518 476
192 - UBP INTEGRATED REPORT 2020