AGS Transact Technologies Limited
Annexure VI: Notes to the Revised Restated Consolidated Financial Information

Note 46
Financial instruments — Fair values and risk management

BB. Financial risk management
‘The Group has exposure tothe following risks arising from financial instruments:
+ Credit isk

+ Liquidity sk ; and

+ Market risk

4. Risk management framework
‘The Company's Board of Directors has overall responsibilty forthe establishment and oversight of the Group's risk management framework

‘The Group's risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls and to monitor rsks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Group's activities

Hi Credit risk
Credit risk isthe risk of financial loss to the Group if a customer or counterparty to 2 financial instrument fails to meet its contractual obligations, and arises princ
Jnvestments. The carying amounts of financial assets represent the maximum credit risk exposure.

ly from the Groups receivables from customers and

   

‘a. Trade and unblled receivables
‘The Group has a policy under which each new customer Is analysed individually for creditworthiness before offering credit and delivery / service terms and conditions. The Group makes specific provisions against such trade
receivables wherever required and monitors the same at periodical intervals.

(Credit isk from trade receivables is managed through the Group's policies, procedures and controls relating to customer credit risk management by establishing credit limits, credit approvals and monitoring creditworthiness of
the customers to which the Group extends credit inthe normal course of business, Outstanding customer receivables are regularly monitored. Based on prior experience, the portfolio of customers and an assessment of the curent
economic environment, management believes there is no credit risk provision required. Also, Group does not have any significant concentration of credit risk

 

‘The fllowing table provides information about the exposure to credit risk and expected credit loss for trade receivables:
(Bs. in milton)
‘Gross carving amount

 

 

Particulars ‘31 August 2021 31 March 2021 31 March 202031 March 2019

Not due Past due 0-180 days 6,047.40 647955 4807.97 $ad1 a6

More than 180 days 1,657.21, 1,608,66 1,351.45 1,173.39
7,704.61 2,008.24 6,159.42 5,618.05

 

‘The carrying amounts of the trade receivables include receivables which are subject to factoring arrangement aggregating to Rs 381.49 milion (31 March 2021: Rs, 360.42 milion, 31 March 2020 Rs,143.26 milion and 31
March 2019 Rs. Nil). The amount repayable under the factoring arrangement is presented in secured borrowings.
‘The amounts reflected in the table above ate not impaired as atthe reporting dates. The allowance for expected credit loss i nil and there are no trade recelvables which have significant increase incre risk.

. Cash, cash equivalents and other bank balances
‘The Group held cash and cash equivalents and other bank balances of Rs. 909,83 millon (31 March 2021: Rs, 6,942.10 milion, 31 March 2020: Rs. 758,80 million and 31 March 2019 Rs. 380.06 milion) The cash and cash
‘equivalents are held with bank and financial institution counterparties with good eredit ratings.

 

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