MHSC ANNUAL REPORT 2020

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Mine Health and Safety Council for the year ended March 31, 2020

Notes to the Financial Statements

2020 R

2019 R

Statement of financial performance Increase in revenue from non‑exchange transactions (Refer to 3 above)

- - - - - -

(194,677)

Decrease in revenue from exchange transactions ( refer to 3 above)

194,677

Increase in revenue from non‑exchange transactions (refer to 4 above)

(431,090)

Decrease in revenue from exchange transactions ( refer to 4 above)

431,090

Increase in revenue from non‑exchange transactions (refer to 5 above)

(10,360,740)

Decrease in revenue from exchange transactions ( refer to 5 above)

10,360,740

23. Risk management Financial risk management The entity’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The entity’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the entity’s financial performance. Risk management is carried out by a central treasury department (entity treasury) under policies approved by the accounting authority. The accounting authority provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non‑derivative financial instruments, and investment of excess liquidity. Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, entity treasury maintains flexibility in funding by maintaining availability under committed credit lines. The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages

liquidity risk through an ongoing review of future commitments and credit facilities. Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored.

The table below analyses the entity’s financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

2020

R Less than 1 year

R 1‑2 years

R 2‑5 years

R 5+years

Total

-

-

-

Trade and other payables Finance lease obligations

11,746,277

11,746,277

-

-

305,622

16,034

321,656

-

-

- -

Admin fine liability

5,661,895 5,661,895

5,661,895

12,051,899

16,034

17,729,828

98

“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”