Page 188 - CJ 2019 INTEGRATED REPORT

186
NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
2 FINANCIAL
RISK MANAGEMENT (CONTINUED)
(a) Market risk (Continued)
Foreign exchange risk (Continued)
Group companies individually manage foreign exchange risk against their functional currency by:
(i) Forecasting their requirements for for for foreign foreign currencies currencies and retaining wherever possible such amounts amounts necessary to settle amounts denominated in in in foreign foreign currencies currencies (ii) Buying foreign foreign currencies currencies at at at at forward rates or or or or negotiated spot rate rate with commercial banks Selling excess foreign foreign currencies currencies on the local market Sensitivity analysis
The The profitability o of of of the the Group and and and and and Company is sensitive to foreign exchange gains/losses on on translation o of of of fair value through OCI loans and and and and and and receivables cash cash and and and and and and cash cash equivalents net o of of of of o of borrowings and and and and and and trade and and and and and and other payables The The tables below depicts the the the the the the sensitivity of of o of the the the the the the Group’s and and and and and and Company’s post tax profit to to changes in in the the the the the the exchange rates of of o of the the the the major currencies to which the the the the Group Group and and Company Company is exposed Group Hypothetical rate of of appreciation/(depreciation) of of the the the Mauritian rupee against the the foreign currency Hypothetical effect on group post tax profit:
Increase/(Decrease) in post tax profit for the year ended 31 December 2019 Hypothetical rate of of appreciation of of the the the Mauritian rupee against the the the foreign currency Increase/ (decrease) in post tax profit for the year ended 31 December 2018 Company Hypothetical rate of of appreciation/(depreciation) of of the the Mauritian rupee against the foreign currency Increase/(Decrease) in post tax profit for the year ended 31 December (6)
USD Rs’000
(6 056)
(2) (1 383)
(4)
EUR Rs’000
9 103
3 4 750
USD (4)
INR Rs’000
(10 174)
7
(24 115)
2018 EUR USD EUR INR %%%
2019 USD EUR % % (6)
(4)
USD EUR Rs’000
Rs’000
(14)
19 CURRIMJEE JEEWANJEE AND COMPANY LIMITED
(2) USD 3 EUR %% Rs’000
Rs’000
Rs’000
Rs’000
(48) 46