NRF Annual Report 2018

PART D: ANNUAL FINANCIAL STATEMENTS
35. Change in estimate
Property, plant and equipment
A change in the depreciation estimate, due to a change in the residual values and useful lives of certain assets, had an
impact of R 0,2m decrease for the current and future periods.
36. Risk management
Financial risk management
The entity’s activities expose it to a variety of financial risks: market risk (including currency risk and cash flow interest rate
risk), credit risk and liquidity risk.
The entity’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the entity’s financial performance. Risk management is carried out by a central treasury
department under policies approved by the board. Entity treasury identifies, evaluates and hedges financial risks in close
co-operation with the entity’s business units. The board provides written principles for overall risk management, as well
as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of
excess liquidity.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding.
The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk
through an ongoing review of future commitments, through proper management of working capital, capital expenditure and
actual vs. forecasted cash flows and its investment policy. Adequate reserves and liquid resources are also maintained.
The table below analyses the entity’s financial liabilities into relevant maturity groupings based on the remaining period at
the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not
significant.
Less than 1 year Between 1 and 2 years
At March 31, 2018
Trade and other payables 40,997 -
Finance leases 59 37
At March 31, 2017
Trade and other payables 70,926 -
Finance leases 104 96
NRF Annual Report 2017/18 209