Page 79 - MPA ANNUAL REPORT 2016-2017

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MAURITIUS PORTS AUTHORITY
NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2017

3. FINAN CIAL RI SK MANAGEMENT

3.1. Financial Risk Factors

The Auth ority’s ac tivities e xpose it to a vari ety of fin ancial risks, including:
• Foreign exchange risk;
• Credit risk;
• Price risk;
• Liquidity risk; and
• Interest rate risk.
The Authority’s overall risk management programme focuses on the unpredictability of financial markets and seeks
to minim ise poten tial adve rse effe cts of the Authori ty’s finan cial performance.
A descrip tion of th e signifi cant risk factors i s given b elow tog ether wi th the ris k manag ement p olicies applicable.
Foreign exchange risk
The Authority is exposed to foreign exchange risk arising from various currency exposures primarily with respect
to Euro and USD.
T he Auth ority has set up a policy th at requi res mana gement to manag e its exc hange ri sk expos ure with treasury.
The Authority aims at keeping sufficient cash in foreign currencies to repay its debts denominated in that same
currency and also to finan ce major capital p rojects payable in foreign currencies.
The Authority’s currency profile is as follows:

MUR 2017 Euro MUR 2015 Euro
Rs’000 USD Rs’000 Rs’000 USD Rs’000
Rs’000 Rs’000
370,729 138,886 195,377
Assets 1,084,229 284,687 374,563
Cash and cash equivalents 393,000 1,175,000 60,030
81,282 619,655 - 124,305 3,146,955 -
Other short term financial 149,561 - 200,620
assets 544,580 474,776 -
228,692 - - 292,188 - 2,272
Loans receivable 1,618,283 2,898 - 2,205,155 108,332 257,679
1,856,343 284,687 3,830,470
Available-for-sale financial - - -
assets 380,571 1,252,163 - 249,151 1,555,451 5,984
51,778 126,364 221,320
Trade and other receivables 90,928 - 77,272 - -
471,499 - 326,423 5,984
1,303,941 126,364 1,776,771
Liabilities
Borrowings

Trade and other payables

Provision for other liabilities

MAURITIUS PORTS AUTHORITY | ANNUAL REPORT 2016-17 77