| |
| |
| Notes to the Consolidated Financial Statements |
| 43. |
Financial instruments (continued) |
|
Financial risk management (continued) |
|
Liquidity risk |
|
Liquidity risk is the risk that the Group will be unable to meet a financial commitment in any location or currency. This risk is
minimised through the holding of cash balances and sufficient available borrowing facilities (refer to note 33). In addition,
detailed cash flow forecasts are regularly prepared and reviewed by Treasury. The cash needs of the Group are managed
according to its requirements.
The following table details the Group's contractual maturity for its non-derivative financial liabilities. The table has been
compiled based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Group can be
required to repay the liability. The cash flows include both the principal and interest payments. The adjustment column includes
the possible future cash flows attributable to the financial instrument which are not included in the carrying value of the
financial liability at balance sheet date. |
| |
|
Weighted
average
effective
interest rate
(%) |
Less than
12 months
Rm |
1 to 2 years
Rm |
2 – 5 years
Rm |
Greater
than
5 years
Rm |
Adjustment
Rm |
Total
Rm |
|
2007 |
|
|
|
|
|
|
|
|
Obligations due under |
|
|
|
|
|
|
|
|
finance leases |
11,700 |
(57) |
(58) |
(172) |
(776) |
573 |
(490) |
|
Interest-bearing |
|
|
|
|
|
|
|
|
borrowings |
11,609 |
(7,465) |
— |
— |
— |
— |
(7,465) |
|
Accounts payable |
n/a |
(3,508) |
— |
— |
— |
— |
(3,508) |
| |
|
|
(11,030) |
(58) |
(172) |
(776) |
573 |
(11,463) |
|
2006 |
|
|
|
|
|
|
|
|
Obligations due under |
|
|
|
|
|
|
|
|
finance leases |
9.600 |
(46) |
(46) |
(137) |
(748) |
501 |
(476) |
|
Interest-bearing |
|
|
|
|
|
|
|
|
borrowings |
8.235 |
(100) |
— |
— |
— |
— |
(100) |
|
Accounts payable |
n/a |
(4,173) |
— |
— |
— |
— |
(4,173) |
| |
|
|
(4,319) |
(46) |
(137) |
(748) |
501 |
(4,749) |
|
Credit risk |
|
Potential concentrations of credit risk consist primarily of short-term cash investments and accounts receivable. Credit risk
arises from the risk that a counterparty may default or not meet its obligations timeously. The Group minimises credit risk by
ensuring that counterparties are banking institutions of the highest quality, that appropriate credit limits are in place for each
counterparty and that short-term cash investments are spread amongst a number of different counterparties. Banking
counterparty limits are reviewed annually by the Board.
Trade accounts receivable involve a small group of international companies. Therefore a significant portion of the Group's
revenue and accounts receivable are from these major customers. The financial condition of these companies and the
countries they operate in are reviewed annually by the Financial Risk Sub-committee. |
|
|
|
|
|
|
|
