Entire Document - Chris Hani District Municipality

2012 2011RR30 June 2011Level 1 Level 2 Level 3 TotalR R R RFINANCIAL ASSETSFinancial Instruments at Fair Value:Call Deposits - 115 786 209 - 115 786 209Bank Balances and Cash - 267 404 504 - 267 404 504Total Financial Assets - 383 190 713 - 383 190 713FINANCIAL LIABILITIESFinancial Instruments at Fair Value:Annuity Loans - 5 553 707 - 5 553 707Chapter 4Total Financial Liabilities - 5 553 707 - 5 553 707Total Financial Instruments - 377 637 005 - 377 637 00547.3 Capital Risk ManagementThe municipality manages its capital to ensure that the municipality will be able tocontinue as a going concern while delivering sustainable services to consumersthrough the optimisation of the debt and equity balance. The municipality’s overallstrategy remains unchanged from 2011.The capital structure of the municipality consists of debt, which includes Bank, Cashand Cash Equivalents and Equity, comprising Funds, Reserves and AccumulatedSurplus as disclosed in Note 20 and the Statement of Changes in Net Assets.Gearing RatioThe gearing ratio at the year-end was as follows:Debt 5 553 707 6 628 389Bank, Cash and Cash Equivalents (230 224 396) (267 404 504)Net Debt (224 670 689) (260 776 115)Total Capital 2 776 987 969 2 495 346 229Net debt to total capital ratio -8,09% -10,45%195