With independent auditor’s report

statement of
profit or loss
In the
consolidated
statement
of other
comprehen-
sive income
31 December
2020
Deferred tax assets
Trade receivables
670
131
−
(776)
25
81
−
106
(26)
−
80
Advances paid
202
(131)
−
(71)
−
−
−
−
−
−
−
Inventories
438
(106)
−
(211)
121
(72)
−
49
(22)
−
27
Provisions
121
19
(8)
(2)
130
73
−
203
144
12
359
Other
108
211
−
(304)
15
(1)
−
14
(14)
−
−
Deferred tax assets
1,539
124
(8)
(1,364)
291
81
−
372
82
12
466
Deferred tax liabilities
Property, plant and
equipment
(2,395)
(140)
−
2,051
(484)
42
−
(442)
(217)
−
(659)
Investments in joint ventures
and associates
(1,042)
133
(26)
−
(935)
(302)
(194)
(1,431)
(303)
(229)
(1,963)
Accrued liabilities and other
payables
−
(34)
−
34
−
−
−
−
−
−
−
Deferred tax liabilities
(3,437)
(41)
(26)
2,085
(1,419)
(260)
(194)
(1,873)
(520)
(229)
(2,622)
Net deferred tax liabilities
(1,898)
83
(34)
721
(1,128)
(179)
(194)
(1,501)
(438)
(217)
(2,156)
The temporary differences associated with investments in the Group’s subsidiaries for which a deferred tax liability was not recognized in the periods presented,
aggregate to UZS 4,545 billion (2019: UZS 5,519 billion, 2018: UZS 5,258 billion). The Group determined that the undistributed profits of its subsidiaries will not be
distributed in the foreseeable future.

---

JSC “Uzbekneftegaz”
Consolidated financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
51
30. 
Financial risk management
The Group’s principal financial instruments mainly consist of borrowings, cash and cash equivalents, loans
due from related parties as well as accounts receivable and accounts payable. The Group is exposed to
interest rate risk, foreign currency risk, credit risk and liquidity risk. The Group further monitors the market risk
and liquidity risk arising from all financial instruments.
Market risk
The Group takes on exposure to market risks. Market risks arise from open positions in interest rate, currency,
and securities, all of which are exposed to general and specific market movements. The Group manages
market risk through periodic estimation of potential losses that could arise from adverse changes in market
conditions and establishing appropriate margin and collateral requirements.
The sensitivity analyses in the following sections relate to the position as at 31 December 2020, 2019 and
2018.
Foreign exchange risk
The Group’s main financial instruments in foreign currencies include Cash and cash equivalents, trade
receivables and payables denominated in US dollar, and borrowings denominated in US dollar, Euro and CNY.
As a result of significant borrowings denominated in the US dollars, Euro and CNY, and cash and cash
equivalents, trade receivables and payables denominated in US dollars, the Group’s consolidated statement
of financial position can be affected significantly by movement in the US dollar / UZS, Euro/UZS and CNY/UZS
exchange rates. The Group also has transactional currency exposures. Such exposure arises from revenues
in the US dollars.
The following table demonstrates the sensitivity to a reasonably possible change in the US dollar, Euro and
CNY exchange rate, with all other variables held constant, of the Group’s profit before income tax (due to
changes in the fair value of monetary assets and liabilities). The sensitivity of possible the changes in exchange
rates for other currencies are not considered due to its insignificance to the consolidated financial results of
Group’s operations.
In billions of Uzbek soums