NVFH 2020 Integrated Annual Report

NVest Financial Holdings Limited and its subsidiaries | (Registration number 2008/015990/06)
Annual Financial Statements for the year ended 29 February 2020
Notes to the Annual Financial Statements [continued]
Group
Company
Figures in Rand Notes 2020 2019 2020 2019
33. Financial instruments and risk management [continued]
Liquidity risk
The maturity profile of contractual cash flows of non-derivative financial liabilities, and financial assets held to mitigate the risk,
are presented in the following table. The cash flows are undiscounted contractual amounts.
Group - 2020
Note(s)
Less than 1
year
1 to 2
years
2 to 5
years
Over 5
years
Total
Carrying
amount
Trade and other payables 19 18,544,979 - - - 18,544,979 18,544,979
Borrowings 18 70,907,728 19,477,526 52,573,061 1,847,330 144,805,645 125,701,293
Lease liabilities 268,896 285,030 1,376,840 93,996 2,024,762 1,466,110
89,721,603 19,762,556 53,949,901 1,941,326 165,375,386 145,712,382
Group - 2019
Note(s)
Less than 1
year
1 to 2
years
2 to 5
years
Over 5
years
Total
Carrying
amount
Trade and other payables 24,544,189 - - - 24,544,189 24,544,189
Borrowings 18 40,458,445 66,878,445 45,613,828 9,308,365 162,259,083 142,185,205
65,002,634 66,878,445 45,613,828 9,308,365 186,803,272 166,729,394
Company - 2020
Note(s)
Less than 1
year
1 to 2
years
2 to 5
years
Over 5
years
Total
Carrying
amount
Trade and other payables 113,204 - - - 113,204 113,204
Lease liabilities 703,288 3,066,630 14,479,748 13,888,563 32,138,229 21,506,818
816,492 3,066,630 14,479,748 13,888,563 32,251,433 42,423,552
Company - 2019
Note(s)
Less than
1 year Total
Carrying
amount
Trade and other payables 19 1,556,545 1,556,545 1,556,545
Loans from group
68 68 68
companies
1,556,613 1,556,613 1,556,613
Interest rate risk
Interest rate sensitivity analysis
The following sensitivity analysis has been prepared using a sensitivity rate which is used when reporting interest rate risk
internally to key management personnel and represents management’s assessment of the reasonably possible change in
interest rates. All other variables remain constant. The sensitivity analysis includes only financial instruments exposed to interest
rate risk which were recognised at the reporting date. No changes were made to the methods and assumptions used in the
preparation of the sensitivity analysis compared to the previous reporting period.
Group
At 29 February 2020, if the interest rate had been 1.00% per annum (2019: 1.00%) higher or lower during the period, with all
other variables held constant, profit or loss for the year would have been R 101,683 (2019: R 196,293) lower or higher.
Company
At 29 February 2020, if the interest rate had been 1.00% per annum (2019: 1.00%) higher or lower during the period, with all
other variables held constant, profit or loss for the year would have been R 260,708 (2019: R 427,956) lower or higher.
Price risk
The group is exposed to price risk because of its investments in equity instruments which are measured at fair value. The exposure
to price risk on equity investments is managed through a diversified portfolio. The group is not exposed to commodity price risk.
There have been no significant changes in the price risk management policies and processes since the prior reporting period.
NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020 121