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AFRICAN DAWN Annual Report 2016

continued Notes to the Financial Statements Annual Financial Statements For the year ended 29 February 2016 37. Risk management Risk (continued) Liquidity risk Group 2016 R’000 Not later than 1 month 1 month to 3 months 3 to 12 months 1 year to 3 years More than 3 years Borrowings 173 2,667 10,480 9,025 1,038 Finance lease liabilities - 10 9 - - Loans from directors 61 182 244 - - Trade and other payables 1,663 1,755 964 5,620 2,495 1,897 4,614 11,697 14,645 3,533 Group 2015 R’000 Not later than 1 month 1 month to 3 months 3 to 12 months 1 year to 3 years More than 3 years Borrowings 169 2,130 10,648 16,944 2,875 Finance lease liabilities 30 91 75 - Loans from directors 61 182 487 4,582 - Trade and other payables 2,785 353 285 3,558 - 3,015 2,695 11,511 25,159 2,875 Company 2016 R’000 Not later than 1 month 1 month to 3 months 3 to 12 months 1 year to 3 years More than 3 years Borrowings - - - - - Loans from group companies - - 6,932 - - Loans from directors 61 182 487 4,582 - Trade and other payables 291 715 100 5,372 - 352 897 7,519 9,954 - Company 2015 R’000 Not later than 1 month 1 month to 3 months 3 to 12 months 1 year to 3 years More than 3 years Borrowings - - 1,750 - - Loans from group companies - - 6,932 - - Loans from directors 61 182 487 4,582 - Trade and other payables 774 - 3,559 - - 835 182 12,728 4,582 - Interest rate risk The sensitivity analyses below has been determined based on the exposure to interest rates for non-derivative instruments at the statement of financial position date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the statement of financial position date was outstanding for the whole year. A 100 basis points increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates. If interest rates had been 100 basis points higher or lower and all other variables were held constant, the group’s loss for the period would change by R190 368 (2015: R50 070) (company: Rnil (2015: Rnil). The group and company’s sensitivity to interest rates has dereased during the current period mainly due to the restructuring in variable rate debt instruments (refer to note 15). A 100 basis points increase would increase revenue on unsecured lending by an estimated R393 900 (2015: R273 522). A 100 basis points increase would increase finance costs on borrowings linked to prime by an estimated R203 532 (2015: R223 452) (refer to note 15). 104 AFRICAN DAWN ANNUAL REPORT 2016


AFRICAN DAWN Annual Report 2016
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