Telkom AR front.qxp

280
Telkom Annual Report 2009
Notes to the annual financial statements (continued)
for the three years ended March 31, 2009
12. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)
12.4. Liquidity risk management
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company is exposed to
liquidity risk as a result of uncertain cash flows as well as capital commitments of the Company. Liquidity risk is managed by Telkom’s
Corporate Finance division in accordance with policies and guidelines formulated by Telkom’s executive committee. In terms of its borrowing
requirements the Company ensures that sufficient facilities exist to meet its immediate obligations. In terms of its long-term liquidity risk, the
Company maintains a reasonable balance between the period over which assets generate funds and the period over which the respective
assets are funded. Short-term liquidity gaps may be funded through repurchase agreements and commercial paper bills.
There were no material changes in the exposure to liquidity risk and its objectives, policies and processes for managing and measuring
the risk during the 2009 financial year.
The table below summarises the maturity profile of the Company’s financial liabilities based on undiscounted contractual cash flow at the
balance sheet date:
Contractual
Carrying cash < 6 6 – 12 1 – 2 2 – 5
amount flows months months years years > 5 years
Notes Rm Rm Rm Rm Rm Rm Rm
2009
Non-derivative financial liabilities
Interest-bearing debt (excluding
finance leases) 23 16,720 18,297 5,059 2,500 1,815 5,167 3,756
Credit facilities utilised 19 106 106 106 – – – –
Trade and other payables 27 5,424 5,528 5,399 129 – – –
Finance lease liabilities 34 984 1,846 82 82 171 516 995
Derivative financial liabilities
Other financial liabilities 18 225 235 147 6 82 – –
Interest rate swaps 72 82 – – 82 – –
Forward exchange contracts 153 153 147 6 – – –
23,459 26,012 10,793 2,717 2,068 5,683 4,751
2008
Non-derivative financial liabilities
Interest-bearing debt (excluding
finance leases) 23 12,505 14,403 4,882 1,200 3,900 1,823 2,598
Credit facilities utilised 19 41 41 41 – – – –
Trade and other payables 27 4,923 4,923 4,609 314 – – –
Finance lease liabilities 34 857 1,794 64 62 123 395 1,150
Derivative financial liabilities
Other financial liabilities
Forward exchange contracts 18 168 168 83 85 – – –
18,494 21,329 9,679 1,661 4,023 2,218 3,748