Page 170 - CJ 2019 INTEGRATED REPORT

168 NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019
1 SIGNIFICANT ACCOUNTING POLICIES
Based on on on its its its current projections CJ CJ will be able able to to to to operate within its its its approved facilities with with its its its bankers Some of of of the measures taken above mainly pertaining to to to to a a a a a a a a a a a a a a a a a a a a a reduction of of of of dividend receivable by CJ CJ CJ amounting to to to to a a a a a a a a a a a a a a a a a a a a a total of of of of Rs 150M will be reviewed as as as as we we progress through the the coming months of of of 2020 CJ CJ has has built a a a a a a a a a a a a a a a a a a a a good relationship with its its bankers over time time by respecting its its commitments all all along and and has has their support if if required required in in in in in in in this testing time time The large subsidiaries of the the Group also also have considerable considerable leveraging capacity and and will be be tapped into if if required required Finally CJ also also holds considerable considerable liquid investments that would be be considered as as a a a a a a a a a a a a a last resort The preparation of of of financial statements fin in in in in in in conformity with IFRS requires requires the the the the the use of of of certain critical accounting accounting estimates estimates It also requires requires the the the the the directors to to exercise their judgement judgement fin in in in in in in in in the the the the the process of of of of applying the the the the the Group’s accounting accounting policies The areas areas involving a a a a a a a a a a a a a a a a a a a higher degree of of judgement judgement or or or complexity or or or areas areas where assumptions and estimates estimates are are are significant to the financial statements are are are as as follows:
(a) Critical accounting estimates and assumptions The The The Group and and and Company make estimates estimates estimates and and and assumptions assumptions concerning the the future The The The resulting accounting estimates estimates estimates will by definition seldom equal the the the related actual results The The The estimates estimates estimates and and and and assumptions assumptions that have a a a a a a a a a a a a a a a a a a a a a a a a a a a a a a significant risk of of causing a a a a a a a a a a a a a a a a a a a a a material adjustment to the the carrying amounts of assets and and liabilities are discussed below:
• Post-employment benefits
The The present value of of of the the pension pension obligations depends on on on on on on on a a a a a a a a a a a a a a number number of of of factors that are determined on on on on on on on an actuarial basis using a a a a a a a a a a a a a a a a a a a a a number number of of of of assumptions assumptions assumptions The The assumptions assumptions assumptions used in in in in in in in in in determining the the the the the net cost/(income) for pensions include the the the the the the discount rate Any changes in in in in in in in in in in in these assumptions assumptions assumptions assumptions will impact the the the the the the carrying amount of of of pension pension obligations obligations Critical assumptions assumptions assumptions are are made by the the the the the actuary in in in in in in in determining the the the the the present value of of retirement benefit obligations obligations These assumptions assumptions are are set out in Note 26 • Estimate of of recoverable amount of of investments in in subsidiaries The The recoverable amount of of investments in in in in in in some subsidiaries has been determined based based on on on value value in in in in in in use use calculations calculations and and fair value value less costs costs to sell These calculations calculations require the use use of of of o estimates including discounted cash flows based based on on on on management’s expectations of of o of future revenue growth operating costs costs and and profit margins for each subsidiary The The bases of of these calculations are set out in note 14 CURRIMJEE JEEWANJEE AND COMPANY LIMITED