Page 190 - CJ 2019 INTEGRATED REPORT

188
NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
2 FINANCIAL
RISK MANAGEMENT (CONTINUED)
(b) Credit risk (Continued)
Trade receivables
The Group has policies policies in in in in place to to to to to control the level of of debts to to to to to ensure that sale sale of of products and services are made to to to to to customers with an an an an appropriate credit credit credit history Such policies policies include credit credit credit vetting before sale sale setting up up credit credit credit limits disconnection (cellular phone and and pay pay TV subscribers) and and subscription payments through direct debits amongst others Loans and other loans receivable Exposure Exposure to to to credit credit risk risk for loans receivable is is is is is managed through analysis of of the the ability of of borrowers to to to meet interest and and and capital repayment obligations and and and by by changing the the lending limits where appropriate Exposure Exposure to to to credit credit risk risk is is is is is also managed by by obtaining collaterals and and and guarantees fixed charges are sought from mortgage borrowers Hire purchase debtors
Hire purchase purchase debtors
comprise of of of of a a a a a a a a a a a a a wide variety of of of of customers buying on on on on hire purchase purchase facilities and and are from different sectors of of of of the the economy The Group has has has has no no no significant concentrations of of of of credit credit risk and and and has has has has policies in in in in in place to to to to to to ensure that the the vetting vetting criteria are are assessed and and and reviewed in in in in in order to to to to to take into consideration economic realities All credit credit applications go go through 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 rigorous vetting vetting process and and and and material contracts are are are subject to to to to management approval At the the level of operations outstanding debts are are are continuously monitored and and and and relevant provisions/diminution in in in in in value is is is recognised as and and when they become apparent The maximum exposure to to to credit risk is is represented by the the the the book values of of of the the the the receivables
carried in fin in in in the the the the statement of of of financial position without taking into account the the the the the the the value value value of of of of any collateral obtained Hire purchase purchase purchase debtors
debtors
are secured over the the the the the hire hire purchase purchase purchase assets and the the the the the latter’s fair values approximate the the the the the carrying amounts of of hire hire purchase purchase purchase debtors
debtors
at at the the reporting date Rating of assets bearing credit risks
Credit Ratings
A+
A 1 863
A-*
AAA
AA-
AA+u
A1 - A1+*** 3 454 A2 - A2** 3 451 A3 - A3* 1 869 Aa3 10 470 BBB+ - 2019 Rs’000
2 158
- 2 099
2 084
18 069
- 4 920
- 7 341
- 3 3 783
- 23 505
8 553 - 254 364
228 017
57 364
13 648
7 000
20 260
21 21 621
BBB+*
BBB-*
Baa1**
Baa2**
Baa3** 57 909 CARE MAU AA 2 000
000
CARE MAU A* - CARE MAU AA* - The The The remaining assets bearing credit risks
are unrated *The ratings ratings ratings for for for for foreign investments were taken from ratings ratings ratings provided provided provided by by Standard & Poor’s ** The The The The ratings ratings ratings ratings ratings ratings for for for for for local local equity equity (MCB and and and and SBM) and and and and for for for for for government treasury bills and and and and notes were were taken taken from from ratings ratings ratings ratings provided provided provided by by by Moody’s *** The The The ratings ratings ratings ratings for for for local local equity equity equity were were taken taken from from ratings ratings ratings ratings provided provided provided by by Care Ratings
The The unrated assets consist of equity equity investments secured secured secured housing and and and policy loans loans unsecured and and and secured secured secured loans loans receivable receivable from from related parties other receivables
fixed deposits from from financial institutions and and and cash balances CURRIMJEE JEEWANJEE AND COMPANY LIMITED
2018
Rs’000
1 888
- 1 948 1 922 3 580
7 7 671 337 615 107 304 -