NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
Whenfinancing is done by a reputable bank, as assessedbymanagement, the bank is deemed tohave already conducted its credit risk assessment of the client and the Group and Company receives partial payments directly from the bank. In case of non-bank funding, management relies on the reputation of the client and his commitment based on his non-refundable down payment. If a client defaults in this case, the property is put back on the market and the deposit is retained. Trade receivables and contract assets are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group/Company, and a failure to make contractual payments for a period of greater than 120 days past due.
The maximum exposure to credit risk at 31 December 2020 is the carrying amounts of the financial assets.
The Group/Company’s trade receivables are broken down as follows:
Group
Company
2020
2020
2019
2019
Rs
Rs
Rs
Rs
82,287,034 (2,553,755) 79,733,279
370,543,821
Neither past due nor impaired
160,121,297 (1,414,463) 158,706,834
128,859,762
(781,515)
-
Past due and impaired
Total
369,762,306
128,859,762
Liquidity risk
Liquidity risk is the risk that the Group/Company is unable to meet its payment obligations associated with its financial liabilities when they fall due. Prudent liquidity risk management implies maintaining sufficient cash or credit lines with reputable financial institutions. The table below analyses the Group/Company’s financial liabilities into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
Between 1 and 2 years
Between 2 and 5 years
Less than 1 year
Total
THE GROUP
Rs
Rs
Rs
Rs
At 31 December 2020 Trade and other payables
-
-
322,393,102 1,423,273,837 1,745,666,939
322,393,102 152,233,361 474,626,463
232,278,231 232,278,231
1,038,762,245 1,038,762,245
Borrowings and loans
At 31 December 2019 Trade and other payables
297,825,957 97,552,969 395,378,926
-
-
297,825,957 986,092,584 1,283,918,541
Borrowings and loans
163,521,944 163,521,944
725,017,671 725,017,671
113
Made with FlippingBook - professional solution for displaying marketing and sales documents online