Plan Worldwide Annual Review and Combined Financial ...
Plan Worldwide Annual Review and Combined Financial ...
Plan Worldwide Annual Review and Combined Financial ...
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. Credit risk<br />
Credit risk arises mainly on cash <strong>and</strong> cash equivalents. Receivables <strong>and</strong> advances include small loans advanced under microfinance schemes that<br />
sometimes carry a high risk of default, which amounted to €0.6 million (2011: €0.6 million) net of provisions. Other receivables <strong>and</strong> advances are<br />
spread across all the countries in which <strong>Plan</strong> operates <strong>and</strong> this minimises the exposure to credit risk. Any large receivables due from individual<br />
organisations generally comprise grants receivable from public bodies. The aggregate maximum credit risk at 30 June 2012 was €321 million<br />
(2011: €291 million). The table below shows the combined cash balances held by PI Inc, its subsidiaries <strong>and</strong> the NOs with the five largest bank<br />
counterparties at the balance sheet date.<br />
30 June 2012 30 June 2011<br />
Rating Balance Rating Balance<br />
€000 €000<br />
Counterparty A A1 34,673 A1 32,069<br />
Counterparty B A1 33,100 A1 32,365<br />
Counterparty C A1 31,787 A1 -<br />
Counterparty D A1 26,373 A1 30,164<br />
Counterparty E A1 21,992 A1 22,654<br />
PI Inc’s policy is to hold cash <strong>and</strong> investments with institutions with short term ratings of at least A2 or equivalent, but this is not always<br />
possible having regard to the countries in which <strong>Plan</strong> operates. Investments held to maturity are corporate <strong>and</strong> government bonds. Cash <strong>and</strong><br />
investments are analysed below into those held with institutions with short term ratings of A3 or better <strong>and</strong> those held with other institutions.<br />
Bank deposits &<br />
cash<br />
Debt securities Equities 30 June<br />
2012<br />
€000 €000 €000 €000<br />
Rated A or better<br />
Cash <strong>and</strong> cash equivalents 261,531 - - 261,531<br />
Current asset investments available for sale - 4,958 11,615 16,573<br />
Current asset investments held to maturity 322 1,970 - 2,292<br />
Non-current asset investments available for sale - 2,987 - 2,987<br />
Non-current asset investments held to maturity - - 30 30<br />
Total rated A or better 261,853 9,915 11,645 283,413<br />
Other<br />
Cash <strong>and</strong> cash equivalents 18,734 - - 18,734<br />
Current asset investments available for sale - 402 1,254 1,656<br />
Non-current asset investments available for sale - - 740 740<br />
Total other 18,734 402 1,994 21,130<br />
Total<br />
Cash <strong>and</strong> cash equivalents 280,265 - - 280,265<br />
Current asset investments available for sale - 5,360 12,869 18,229<br />
Current asset investments held to maturity 322 1,970 - 2,292<br />
Non-current asset investments available for sale - 2,987 740 3,727<br />
Non-current asset investments held to maturity - - 30 30<br />
Total cash <strong>and</strong> investments 280,587 10,317 13,639 304,543<br />
30
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