NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
Market risk
Market risk is the risk that the fair value of future cash flows fluctuates because of changes in market prices. Market risk comprises three types of risks: foreign currency risk, fair value interest rate risk and equity price risk.
(a) Foreign currency risk
The Group is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the Euro (EUR), the US Dollar (USD), the Pound Sterling (GBP) and the South African Rand (ZAR).
The Group has financial assets and liabilities denominated in EUR, USD, ZAR and GBP. Consequently, the Group is exposed to the risk that the exchange rate of the Mauritian Rupee (‘Rs’) relative to these currencies may change in a manner which has a material effect on the reported values of the Group’s liabilities which are in these currencies. Of note, the Company does hold any financial assets or liabilities denominated in a foreign currency.
Currency profile
The currency profile of the Group’s financial assets and liabilities as at 31 December 2020 and at 31 December 2019 is summarised as follows:
THE GROUP
Financial assets
Financial liabilities
Financial assets
Financial liabilities
2020
2020
2019
2019
Rs
Rs
Rs
Rs
208,855,162 27,363,744
1,602,474,925
Mauritian Rupee
221,240,067 39,916,598 1,025,877 7,486,254
1,160,190,268 123,728,273
143,192,014
Euro USD ZAR GBP
1,106,969 8,201,304 305,067
- - -
- - -
203,750
245,832,246
1,745,666,939
269,872,546
1,283,918,541
THE COMPANY
Financial assets
Financial liabilities
Financial assets
Financial liabilities
2020
2020
2019
2019
Rs
Rs
Rs
Rs
369,741,056 369,741,056
287,338,335 287,338,335
Mauritian Rupee
128,875,562 128,875,562
276,480,683 276,480,683
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