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Notes to the financial statements
continued
for the year ended 30 September 2015
182
Tiger Brands Limited integrated annual report
2015
37 Financial instruments
continued
37.4 Liquidity risk management
continued
Contractual maturity for non-derivative financial liabilities
continued
(R’million)
Carrying
amount
Finance
charge
0 – 6
months
7 – 12
months
1 – 5
years > 5 years
Company
2015
Borrowings (long and short term)*
270,7
(22,7)
151,1
43,8
98,5
–
Intergroup loan accounts
544,8
(204,3)
–
–
749,1
–
Guarantees not on the statement of
financial position
–
–
91,3
–
–
–
Total
815,5
(227,0)
242,4
43,8
847,6
–
2014
Borrowings (long and short term)
169,3
(35,4)
–
51,2
153,5
–
Intergroup loan accounts
490,1
(177,7)
–
–
667,8
–
Guarantees not on the statement of
financial position
–
–
55,0
–
–
–
Total
659,4
(213,1)
55,0
51,2
821,3
–
* Excludes bank overdrafts of R3 178,4 million (2014: R3 086,2 million) and cash of R1 051,6 million (2014: R1 160,3 million).
These are repayable on demand and subject to annual review.
Refer to notes 33.3 and 33.4 for disclosure relating to operating and finance lease commitments.
37.5 Credit risk management
GROUP
Credit risk arises from the risk that a counterparty may default or not meet its obligations timeously.
The group limits its counterparty exposure arising from financial instruments by only dealing with well-established
institutions of high credit standing. The group does not expect any counterparties to fail to meet their obligations given
their high credit ratings.
Credit risk in respect of the group’s customer base is controlled by the application of credit limits and credit monitoring
procedures. Certain significant receivables are monitored on a daily basis. Where appropriate, credit guarantee
insurance is obtained.
The group’s credit exposure, in respect of its customer base, is represented by the net aggregate balance of amounts
receivable. Concentrations of credit risk are disclosed in note 21.4.
Credit risk exposure at 30 September 2015 in respect of guarantees amounted to R16,9 million (2014: R70,8 million).
Refer to note 36.
COMPANY
Credit risk exposure at 30 September 2015 relating to guarantees amounted to R91,3 million (2014: R55,0 million).
Refer to note 36.