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22
FINANCIAL INSTRUMENTS (continued)
22.3 Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its fi nancial obligations as these fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have suffi cient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
The Group monitors its cash fl ow on a daily basis. Typically, the Group ensures that it has suffi cient cash on demand
to meet expected operational expenses for a period of 60 days, including the servicing of fi nancial obligations; this
excludes the potential impact of extreme circumstances that cannot be predicted reasonably, such as natural disasters.
The CSIR has a short-term general banking facility of R500 000 (2010: R500 000) available.
The following are the contractual maturities of fi nancial liabilities, including interest payments and excluding the impact
of netting agreements for the Group:
2011 2010
Carrying
amount
Contractual cash fl ows
6 months
or less
6 - 12
months
Carrying
amount
Contractual cash fl ows
6 months
or less
6 - 12
months
R’000 R’000 R’000 R’000 R’000 R’000
Non-derivative financial liabilities
Trade and other payables (526 542) (526 542) - (445 195) (445 195) -
Derivative financial liabilities
Forward exchange contracts (28) (1 136) - (115) (2 679) -
(526 570) (527 678) - (445 310) (447 874) -
GROUP
2011 2010
R
R
Rate of forward exchange contracts:
Euro - 10.3849
CHF 7.6104 -
159
ANNUAL FINANCIAL STATEMENTS