Directors' Report and Financial Statements 31 March ... - Precision Air

PRECISION AIR SERVICES PLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 MARCH 2012
33 FAIR VALUE OF FINANCIAL INSTRUMENTS
Set out below is the carrying amounts and fair value of the Group’s financial instruments that
are carried in the financial statements.
Fair values
Carrying amount
2012 2011 2012 2011
TZS’000 TZS’000 TZS’000 TZS’000
Financial assets
Trade and other
receivables 14,685,762 14,834,089 14,685,762 14,834,089
Other financial assets 10,439,041 5,255 10,439,041 5,255
Cash and short-term
deposits 6,618,856 8,857,140 6,618,856 8,857,140
Financial liabilities
Interest bearing loans
and borrowings 181,513,675 185,694,712 181,513,675 185,694,712
Trade and other
payables 38,667,806 36,077,593 38,667,806 36,077,593
Held to maturity financial assets, other receivables, fixed deposits with financial institutions;
cash and bank balances and other payables are at amortised cost and their carrying amounts
approximate their fair values as they have variable interest rate and the rates are market related.
The fair value of the financial assets and liabilities are included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale. The Group did not have at the reporting date any financial assets and
liabilities measured at fair value.
The following methods and assumptions were used to estimate the fair values.
• Other financial assets, cash and short-term deposits, trade and other receivables, bank
overdraft and trade and other payables approximate their carrying amounts largely due to the
short-term maturities of these instruments.
• The fair value of interest bearing loans and borrowings is estimated by discounting future
cash flows using rates currently available for debt or similar terms and remaining maturities.
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DIRECTORS’ REPORT AND FINANCIAL STATEMENTS 31 MARCH 2012