CAV Annual Report 2021

CENTURION AEROSPACE VILLAGE NPC Registration Number: 2000/006996/08 ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE ANNUAL FINANCIAL STATEMENTS

2021

2020

R

R

23. COVID-19 Impact on going concern without material uncertainties COVID-19 is not expected to have a significant impact on the entity. Management has determined that there is no material uncertainty that casts doubt on the entity’s ability to continue as a going concern. It expects that COVID-19 might have some marginal impact, though not significant, for example, in relation to expected future performance, or the effects on some tenants relocating or starting a new business in CAV. 24. RISK MANAGEMENT Financial risk management The company’s approach to risk management is based on risk governance structures, risk management policies, risk identification, measurement, reporting, monitoring, and continuous assessment. The company is exposed to various financial risks due to the nature and diversity of its activities and the use of various financial instruments. These risks include: • Interest rate risk • Liquidity risk • Credit risk Information about the company’s exposure to each of the above risks, its objectives, policies and processes for measuring and managing these risks are included in this note. Further quantitative disclosures are included throughout the annual financial statements. The Board of Directors has overall responsibility for the establishment and oversight of the company’s riskmanagement framework. Interest rate risk Interest rate risk arises due to adverse movements in domestic and foreign interest rates. The Company invested its funds in an interest-bearing account. The company does not depend on the interest for its liquidity. Its income and operating cash flows are substantially independent of changes in market interest rates. Cash flow interest rate risk - At 31 March 2021, if interest rates on Rand-denominated borrowings had been 1% higher/lower with all other variables held constant, surplus for the year would have been R672,076 (2020: R616,024) lower/higher, mainly as a result of higher/lower interest income on floating rate borrowings. Liquidity risk Liquidity risk is the risk that the company is unable to meet its payment obligations when they fall due and to replace funds when they are withdrawn, the failure of which may be the failure to meet obligations as they fall due. Funding risk arises when the necessary liquidity to fund liquid asset positions, such as building infrastructure facilities and buildings for the park, cannot be obtained at the expected terms and when required. Carrying amount Less than 1 year Between 1 and 5 years and 5 years Over 5 years Cash and cash equivalents 67,207,616 67,207,616 -

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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