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Note 29.8 Financial risk management (continued)
c) Management of credit risk
ƑĚēĿƥ ƑĿƙŒ Ŀƙ ƥĺĚ ƑĿƙŒ ūlj ǛŠîŠČĿîŕ ŕūƙƙ ƥū ƥĺĚ HƑūƭƎ Ŀlj î ČƭƙƥūŞĚƑ ūƑ ČūƭŠƥĚƑƎîƑƥNj ljîĿŕƙ ƥū ŞĚĚƥ Ŀƥƙ ČūŠƥƑîČƥƭîŕ ūċŕĿijîƥĿūŠƙȦ
Trade receivables
Concentrations of credit risk with respect to trade receivables are limited, due to the customer base being large, diverse and
îČƑūƙƙ ƙĚČƥūƑƙ îŠē ČūƭŠƥƑĿĚƙȦ ¬ĿijŠĿǛČîŠƥ ƎūƑƥĿūŠ ūlj ƥƑîēĚ ƑĚČĚĿDŽîċŕĚ îƑĚ ƙĚČƭƑĚē ċNj ĿŠƙƭƑîŠČĚ ƎūŕĿČĿĚƙ ūƑ /¡ H ƙČĺĚŞĚƙȦ
All trade receivables are reviewed and assessed for default on a quarterly basis.
Reconciliation of loss allowance provision – trade receivables
(
`
cr)
Particulars
Loss allowance on
trade receivables
Loss allowance as on March 31, 2017
3.16
Changes in loss allowance
(0.56)
Loss allowance as on March 31, 2018
2.60
Changes in loss allowance
5.01
Loss allowance as on March 31, 2019
7.61
~ƥĺĚƑ ǛŠîŠČĿîŕ îƙƙĚƥƙ
¹ĺĚ HƑūƭƎ ŞîĿŠƥîĿŠƙ ĚNJƎūƙƭƑĚ ĿŠ Čîƙĺ îŠē Čîƙĺ ĚƐƭĿDŽîŕĚŠƥƙȡ ƥĚƑŞ ēĚƎūƙĿƥƙ DžĿƥĺ ċƙȡ ĿŠDŽĚƙƥŞĚŠƥƙ ĿŠ ijūDŽĚƑŠŞĚŠƥ ƙĚČƭƑĿƥĿĚƙȡ
ƎƑĚljĚƑĚŠČĚ ƙĺîƑĚƙ îŠē ŕūîŠƙ ƥū ƙƭċƙĿēĿîƑNj ČūŞƎîŠĿĚƙȦ ¹ĺĚ HƑūƭƎ ĺîƙ ēĿDŽĚƑƙĿǛĚē ƎūƑƥljūŕĿū ūlj ĿŠDŽĚƙƥŞĚŠƥ DžĿƥĺ DŽîƑĿūƭƙ ŠƭŞċĚƑ
of counterparties which have secure credit ratings hence the risk is reduced. Individual risk limits are set for each counter-
ƎîƑƥNj ċîƙĚē ūŠ ǛŠîŠČĿîŕ ƎūƙĿƥĿūŠȡ ČƑĚēĿƥ ƑîƥĿŠij îŠē Ǝîƙƥ ĚNJƎĚƑĿĚŠČĚȦ ƑĚēĿƥ ŕĿŞĿƥƙ îŠē ČūŠČĚŠƥƑîƥĿūŠ ūlj ĚNJƎūƙƭƑĚƙ îƑĚ îČƥĿDŽĚŕNj
monitored by the treasury department of the Group.
Impact of hedging activities
îȴ 'ĿƙČŕūƙƭƑĚ ūlj ĚljljĚČƥƙ ūlj ĺĚēijĚ îČČūƭŠƥĿŠij ūŠ ǛŠîŠČĿîŕ ƎūƙĿƥĿūŠȠ
As at March 31, 2019
(
`
cr)
Type of hedge and risks Notional value Carrying amount of
hedging instrument
Maturity
(months)
Weighted
average
strike price |
interest rate
Changes
in fair
value of
hedging
instrument
Change in
the value of
hedged item
used as the
basis for
recognising
hedge
effectiveness
Assets Liabilities Assets Liabilities
îƙĺ ǜūDž ĺĚēijĚ
`
Ƞ À¬ɐ
Foreign exchange risk
Currency range options
87.09
-
1.22
-
1-12
ǬǯȦǬǪȹǭǫȦǮǪ
1.22
(1.22)
Consolidated
|
Notes to the Financial Statements
235