BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023

20. FINANCIAL INSTRUMENTS (continued)

At amortised cost

Non-interest bearing

Interest bearing

TOTAL

Amount R’000

Effective interest rate

Amount R’000

R’000

Year ended 31 March 2023 Assets Cash Other accounts receivable

1 126 577

6.12%

1 1 126 578

-

8 406

8 406

-

Total financial assets

1 126 577

6.12%

8 407 1 134 984

Liabilities Trade and other payables Total financial liabilities Year ended 31 March 2022 Assets Cash and cash equivalents Other accounts receivable

- -

105 498 105 498

105 498 105 498

- -

1 212 576

3.99%

-

1 212 576

-

-

1 321 1 321

1 321

Total financial assets

1 212 576

3.99%

1 213 897

Liabilities Trade and other payables Total financial liabilities

- -

- -

92 062 92 062

92 062 92 062

20.2 Liquidity risk Liquidity risk is the risk that the entity could experience difficulties in meeting its commitments to creditors as financial liabilities fall due for payment. The BANKSETA is exposed to liquidity risks as it has outstanding obligations to make payments to levy-paying employers and training providers for training that has been completed and also payments to trade creditors for goods delivered and services rendered. The SETA manages liquidity risk through proper management of working capital, capital expenditure and review of cash flows against budgeted cash flows as detailed in the finance policies. Adequate reserves and liquid resources are also maintained.

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BANKSETA ANNUAL REPORT 2022/23