Telkom AR front.qxp

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Telkom Annual Report 2009
Notes to the annual financial statements (continued)
for the three years ended March 31, 2009
19. CASH AND CASH EQUIVALENTS
2007 2008 2009
Rm Rm Rm
Cash shown as current assets 176 483 941
Cash and bank balances 76 83 601
Short-term deposits 100 400 340
Credit facilities utilised – (41) (106)
Net cash and cash equivalents 176 442 835
Undrawn borrowing facilities 6,566 5,894 6,226
The undrawn borrowing facilities are unsecured when drawn, bear interest at a rate that will be mutually agreed between the borrower
and lender at the time of drawdown, have no specific maturity date, are subject to annual review and are in place to ensure liquidity. At
March 31, 2009, R3,000 million of these undrawn facilities were committed.
Borrowing powers
To borrow money, Telkom’s directors may mortgage or encumber Telkom’s property or any part thereof and issue debentures, whether
secured or unsecured, whether outright or as security for debt, liability or obligation of Telkom or any third party. For this purpose the
borrowing powers of Telkom are unlimited, but are subject to restrictive financial covenants of the loan facility as indicated on note 23.