SACAA Annual Report 2022_23

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Annual Financial Statements for the year ended 31 March 2023

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Notes to the Annual Financial Statements

27. Risk management Capital risk management

Management meets on a regular basis to analyse interest rate exposures and evaluate treasury management strategies against revised economic forecasts. Compliance with policies and exposure limits is reviewed by management on a continuous basis. Management believes that, to the best of its knowledge, there are no significant undisclosed Liquidity risk refers to the risk that the SACAA will encounter difficulty in meeting obligations associated with financial liabilities. 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. The SACAA’s current ratio of 3.9 times indicates that it will be able to settle its financial liabilities (payables and provisions) in the normal course of business. The SACAA’s risk to liquidity is a result of the funds available to cover future commitments. The SACAA manages liquidity risk through an ongoing review of future commitments and credit facilities. financial risks. Liquidity risk

The SACAA’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide return for its shareholder and benefits for its stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. The capital structure of the SACAA consists of cash and cash equivalents disclosed in note 3, and equity as disclosed in the statement of financial position. As the SACAA is not exposed to debt, there is no meaningful debt to equity ratios, such as gearing ratio, to be disclosed. There are no externally imposed capital requirements. There have been no changes to what the SACAA manages as capital. The strategy for capital maintenance or externally imposed capital requirements remained the same as in the previous year. Financial risk management The SACAA’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.

Cash flow forecasts are prepared and monitored on a monthly basis.

2023

2022

Current assets Current liabilities

549 236 055 140 535 453 3.9:1

411 766 506 95 067 761 4.3:1

Annual Financial Statements I Annual Report 2022/23 I 217