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AFRICAN DAWN 2015 Annual Report

Notes to the Financial Statements continued 44. Risk management (continued) AFRICAN DAWN 115 ANNUAL REPORT 2015 Concentrations of risk There are no concentrations of risks. Exposure The Group is exposed to credit risk, interest rate risk and liquidity risk as follows: Financial instrument Credit risk Liquidity risk Cashflow interest rate risk Fair value interest rate risk Non-interest rate risk Other financial assets Yes No No No Yes Properties in possession No No No No No Loans to group companies Yes No No Yes* No Trade receivables Yes No Yes No No Other receivables Yes No No Yes* Yes Cash and cash equivalents Yes No Yes No No Borrowings No Yes Yes Yes* Yes Finance lease liability No Yes Yes No No Convertible bond No No Yes No No Loans from group companies No Yes No No Yes Loans from directors No Yes No Yes No Operating lease liabilities No Yes No No No Trade payables No Yes No No Yes • Balances that are either interest free or where interest is earned / paid at less than a market related rate. From an operational perspective, there is no interest rate risk. However, from an IFRS perspective, these loans are discounted and deemed interest income / expense is recognised. Therefore such loans give rise to fair value interest rate risk. Management of risk Cashflow is monitored very closley on a continuous basis. Credit risk is very closley managed in accordance with the basis as disclosed in the accounting policy 1.17.


AFRICAN DAWN 2015 Annual Report
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