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CSIR ANNUAL REPORT 2010/11
Notes to the Annual Financial Statements
for the year ended 31 March 2011
22
FINANCIAL INSTRUMENTS (continued)
22.1 Market risk (continued)
GROUP
2011 2010
R’000 R’000
Variable rate instruments: Carrying amount
Financial assets: Call deposits 261 289 193 724
Financial assets: Bank balances 179 663 87 764
440 952 281 488
Sensitivity analysis
An increase of 100 basis points in interest rates at the reporting date would have increased equity and profi t and loss
by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain
constant. The analysis is performed on the same basis for 2010.
Variable rate instruments 4 410 2 815
A decrease of 100 basis points would have had the equal but opposite effect to the amounts shown above.
22.2 Credit risk
Credit risk is the risk of fi nancial loss to the Group if a customer or counterparty to a fi nancial instrument fails to meet
its contractual obligations, and arises principally from the Group’s bank balances and deposits, trade and other
receivables and loans to joint ventures, associates and subsidiaries.
Trade and other receivables and loans to joint ventures, associates and subsidiaries
Trade and other receivables and loans to joint ventures, associates and subsidiaries are presented net of impairment
losses. Credit risk with respect to trade receivables is limited due to the large number of customers comprising the
Group’s customer base and their dispersion across different industries and geographical areas. Accordingly, the Group
does not have a signifi cant concentration of credit risk.
The carrying amounts of fi nancial assets included in the statement of fi nancial position represent the Group’s exposure to
credit risk in relation to these assets.
The Group does not have any signifi cant exposure to any individual customer or counterparty.
Bank balances and deposits
The Group’s bank balances and cash are placed with high credit, quality fi nancial institutions.
Guarantees
Refer to note 20 for details on bank guarantees issued with respect to facilities.
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