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Tiger Brands Limited Integrated Annual Report
2014
Annual financial statements
37 Financial instruments
continued
37.3
Interest rate risk management
continued
COMPANY
GROUP
2014
2013
(R’million)
2014
Restated*
2013
Profit/(loss) after tax
ZAR borrowings
+ 1%
(35,2)
(32,3)
– 1%
35,2
32,3
Foreign borrowings
(2,4)
(2,1)
+ 1%
(3,8)
(2,4)
2,4
2,1 – 1%
3,8
2,4
Total
(2,4)
(2,1)
+ 1%
(39,0)
(34,7)
2,4
2,1 – 1%
39,0
34,7
*
The amounts have been restated due to the adoption of IAS 19R.
37.4
Liquidity risk management
Liquidity risk arises from the seasonal fluctuations in short-term borrowing positions. A material and
sustained shortfall in cash flows could undermine investor confidence and restrict the group’s ability to
raise funds.
The group manages its liquidity risk by monitoring weekly cash flows and ensuring that adequate cash is
available or borrowing facilities maintained. In terms of the articles of association, the group’s borrowing
powers are unlimited.
Other than the major loans disclosed in note 31 to these annual financial statements which are
contracted with various financial institutions, the group has no significant concentration of liquidity risk
with any other single counterparty.
The group’s liquidity exposure is represented by the aggregate balance of financial liabilities as
indicated in the categorisation table in note 37.7.