Page 88 - UBF AR 2018 - E Version

NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 March 2018

33. RISK MANAGEMENT (Contd...)

33.8 Credit Quality by Class of Financial Assets (Contd...)

As at 31 March 2017 Neither
Past Due
Nor Impaired Past Due but Individually Total
Not Impaired Impaired Rs.
Rs. Rs.
Rs.

Cash in Hand and Balances with Banks 515,949,911 - - 515,949,911
Sri Lanka Government Securities 8,423,661 - - 8,423,661
Investment in Fixed Deposit - -- -
Cash collateral on securities borrowed &
reverse repurchased agreements 444,432,380 - - 444,432,380
Loans and Receivables from Customers
Financial Investments – Available for Sale 2,548,195,502 6,028,089,012 451,534,723 9,027,819,237
Total Financial Assets 1,152,765 - - 1,152,765

3,518,154,219 6,028,089,012 451,534,723 9,997,777,954

Aging Analysis of past due (i.e. facilities in arrears of 1 day and above) but not impaired loans by class of financial

assets. Past Due But Not Impaired *

Less than 3 3 to 6 6 to 12 More than Total
Months Months Months 12 Months

Loans and receivables from customers 3,757,042,724 888,037,430 411,291,111 971,717,747 6,028,089,012

* Past due but not Impaired Loans and Receivable include the Loans and Receivables that are collectively impaired.

33.9 Analysis of Credit Risk Exposure

The Company seeks to use collateral, where possible, to mitigate its risks on financial assets. The collateral comes in
various forms such as cash, vehicles, gold, securities, letters of guarantees, real estate, receivables, inventories, other
non-financial assets. The fair value of collateral is generally assessed, at a minimum, at inception and based on the
guidelines issued by the Central Bank of Sri Lanka.

To the extent possible, the Company uses active market data for valuing financial assets, held as collateral. Non-
financial collateral, such as real estate, is valued based on data provided by third parties such as independent valuers.

The following table shows the maximum exposure to credit risk by class of financial asset. It further shows the total

fair value of collateral and the net exposure to credit risk. 2018 2017

As at 31 March Maximum Net Exposure Maximum Net Exposure
Exposure to Credit Risk Exposure to Credit Risk
Credit Risk Credit Risk

Rs. Rs. Rs. Rs.

Cash in Hand and Balances with Banks 455,042,958 455,042,958 515,949,911 515,949,911
Sri Lanka Government Securities - - 8,423,661 8,423,661
Cash collateral on securities borrowed &
reverse repurchased agreements 455,652,248 455,652,248 444,432,380 444,432,380
Loans and Receivables from Customers
Financial Investments - Available for Sale 9,452,656,902 555,922,217 8,501,728,542 390,141,528
Commercial Paper Investment 200,900 200,900 1,152,765 1,152,765
Total Financial Assets - -
158,703,642 158,703,642
10,522,256,650 1,625,521,965 9,471,687,259 1,360,100,245

The Company holds certain assets as collateral which it is permitted to sell or repledge in the event of default by the
owner of the collateral, under the usual terms and conditions applying to such agreements which are fair valued based
on the valuations obtained.

86 UB Finance