Page 85 - UBF AR 2018 - E Version

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2018

32.5 Fair value of financial assets and liabilities not carried at fair value (Contd..)

Financial Assets Level 1 Fair 2018 Fair Carrying
Loans and Receivables from Customers Value Value amount
Rs. Level 2 Level 3
Rs. Rs.
- Rs. Rs.
- 9,498,133,491 9,452,656,902
9,498,133,491
-
- 9,498,133,491 9,498,133,491 9,452,656,902

Financial Liabilities - 6,346,341,236 - 6,346,341,236 7,221,584,332
Due to other Customers - 932,383,542 - 932,383,542 2,225,701,258
Other Borrowed Funds
7,278,724,778 9,447,285,590
- 7,278,724,778 -

2017

Financial Assets Level 1 Fair Level 3 Fair Carrying
Loans and Receivables from Customers Value Value amount
Rs. Level 2 Rs.
Rs. Rs.
Financial Liabilities - Rs. -
Due to other Customers 8,794,178,934 8,794,178,934 8,501,728,542
Other Borrowed Funds
- 8,794,178,934 - 8,794,178,934 8,501,728,542

- 5,896,904,107 - 5,896,904,107 6,046,733,939
- 1,926,330,394 - 1,926,330,394 1,966,071,424
- 7,823,234,501 - 7,823,234,501 8,012,805,363

The Following is a list of financial investments whose carrying amount is a reasonable approximation of fair value.
Because for example, they are short-term in nature or reprice to current market rates Frequently:

Assets : Carrying amount 2017
Cash and Bank Balances 2018
Repurchase Agreements Rs.
Commercial Paper Rs.

Liabilities : 455,042,958 515,949,911
Due to Banks 455,652,248 444,432,380
Due to Customers Savings 158,703,642
Other Financial Liabilities -

151,969,768 911,348,844
15,759,869 16,757,131

292,241,942 281,911,853

33 RISK MANAGEMENT The business risks such as changes in the environment,
technology and industry are primarily addressed through
33.1 Introduction the company’s strategic planning process. Industry
specific changes are also reviewed and presented on a
Risk is inherent in the company’s activities, but is need basis by the Management and are tabled at the
managed through a process of ongoing identification, Integrated Risk Management Committee (IRMC) and the
measurement and monitoring, subject to risk limits Credit Committee (CC).
and other controls. This process of risk management is
critical to the companies continuing profitability and
each individual within the company is accountable for
the risk exposures relating to his or her responsibilities.
The company is exposed to credit risk, liquidity risk and
market risk, the latter being subdivided into trading and
non–trading risks. It is also subject to country risk and
various operating risks.

Annual Report 2018 83