BANKSETA AR 31 AUGUST

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2022

20.

FINANCIAL INSTRUMENTS

In the course of the SETA operations it is exposed to credit, liquidity and market risk. The SETA has developed a comprehensive risk strategy in terms of TR 28.1 in order to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings below.

20.1 Interest rate risk The SETA manages its interest rate risk by effectively investing SETA surplus cash in term or call deposits with different financial institutions according to the SETA’s investment policy. The SETA’s exposure to interest rate risk and the effective interest rates on financial assets at Statement of Financial Position date as well as carrying amounts for each category of financial instruments are as follows: At amortised cost

Interest bearing Amount R’000

Non-interest bearing

Total

Effective interest rate

Amount R’000

R’000

Year ended 31 March 2022 Assets Cash Other accounts receivable

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 & provisions

- -

92 062 92 062

92 062 92 062

- -

Total financial liabilities

Year ended 31 March 2021 Assets Cash and cash equivalents Other accounts receivable

1 062 015

4.53%

-

1 062 015

3 501 *

-

-

3 501 3 501

1 062 015

1 065 516

Total financial assets

4.53%

Liabilities Trade and other payables & provisions

39 704 **

- -

- -

39 704 39 704

Total financial liabilities

39 704

* Prior year other accounts receivables figure restated to exclude prepayments. Refer to prior year error note. ** Prior year trade and other payables restated to exclude provisions and mandatory grants payable. Refer to prior year error note.

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PART E: FINANCIAL INFORMATION | BANKSETA ANNUAL REPORT 2021/22