CIPC Annual Report V1

Companies and Intellectual Property Commission Annual Financial Statements for the year ended 31 March 2021 Notes to the Annual Financial Statements

2021

2020

R '000

R '000

31. Risk management (continued)

Credit risk

Reputable financial institutions are used for investing and cash handling purposes. At reporting date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position after taking into account that receivable services payable advance.

Financial assets exposed to credit risk at year end were as follows:

Exposure to credit risk Cash and cash equivalents

662 134 26 332

595 496 24 214

Receivables from exchange transactions

688 466

619 710

* Included is an amount of R619 million (2020: R561 million) invested in a call account at the South African Reserve Bank.

Concentration of credit risk The maximum exposure to credit risk for financial assets at the reporting date by credit rating category was as follows:

March 2021

*Ba2 and Government

Unrated

Cash and cash equivalents

662 134

-

Prepayments

- -

24 806

Receivables from exchange transactions

1 526

662 134

26 332

March 2020

*Ba1 and Government

Unrated

Cash and cash equivalents

595 496

-

Prepayments

- -

22 458

Receivables from exchange transactions

1 756

595 496

24 214

Ageing of financial assets The following table provides information regarding the credit quality of assets, which may expose the CIPC to credit risk:

March 2021

Neither past due nor impaired

Past due but not impaired less than 12 months

Past due but not impaired more than 12 months

Carrying value

Cash and cash equivalents

662 134 24 806

- -

- - -

662 134 24 806

Prepayments

Receivables from exchange transactions

-

1 526

1 526

686 940

1 526

-

688 466

March 2020

Neither past due nor impaired

Past due but not impaired less than 12 months

Past due but not impaired more than 12 months

Carrying value

Cash and cash equivalents

595 496 22 458

- -

- - -

595 496 22 458

Prepayments

Receivables from exchange transactions

-

1 756

1 756

617 954

1 756

-

619 710

33

COMPANIES AND INTELLECTUAL PROPERTY COMMISSION I Annual Report 2020/21

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