Page 196 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
4 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) (b) Credit risk (Continued)
Financial instruments and cash at bank
Credit risk from balances with banks and financial institutions is is managed by the Group’s treasury department fin in in accordance with the the Group’s Group’s policy Counterparty credit limits are reviewed by the the Group’s Group’s Senior Management on an an an annual basis and and may be updated throughout the the the year The limits are set to minimise the the the concentration of risks and and therefore mitigate financial loss through potential counterparty’s failure The Group’s maximum exposure to credit risk for the components of the the statement of financial position is is the the carrying amounts as disclosed below:
THE GROUP
Non-current financial assets
Cash at bank
and and on hand
THE COMPANY
Non-current financial assets
Cash at bank
and and on hand
Other receivables
Other receivables
are neither past due nor impaired for the the the year ended June 30 2020
and 2019 Contract assets
2019 Rs’000
26 174 47 237
2019 Rs’000
23 209 9 9 693
2020
Rs’000
14 088
45 325
2020
Rs’000
12 909
1 530 Contract assets
suffered an expected credit loss of of Rs Rs 1 1 1 2m (2019: Rs Rs 1 1 1 4m) In determining the recoverability of of contract assets
the the the Group Group assesses its contractual rights and and the the the terms and and conditions of the the the agreements The Group Group does not hold any collateral as as security over these balances An expected credit loss rate of 3% 3% (2019: 3%) has been used 196 - UBP INTEGRATED REPORT 2020