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32.
FINANCIAL INSTRUMENTS
(continued)
32.4 Market risk
(continued)
32.4.1 Foreign currency risk
(continued)
Contract value
Settlement
Foreign
amount
’000
Rand
amount
’000
2015
In respect of FECs relating to foreign liabilities as at June 30 2015
US dollar
July to October 2015
(8 221)
(99 729)
Euro
July to September 2015
(7 818)
(107 122)
Australian dollar
July 2015
(603)
(5 689)
Other
July 2015
(289)
(212 829)
In respect of FECs relating to foreign assets as at June 30 2015
US dollar
July to November 2015
9 436
113 679
Euro
July to December 2015
1 738
25 064
138 743
In respect of FECs relating to goods and services ordered not accounted for as at
June 30 2015
US dollar
July to October 2015
(5 000)
(59 492)
Euro
July 2015
(1 313)
(12 265)
Other
July to September 2015
(702)
(72 459)
32.4.2 Interest rate risk
The group is exposed to interest rate risk as it borrows funds at both fixed and floating interest rates. This risk is managed by maintaining
an appropriate mix between fixed and floating borrowings and by the use of interest rate swap contracts. Investments in equity securities
accounted for as held-for-trading financial assets and trade receivables and payables are not exposed to interest rate risk.
At the reporting date, the interest rate profile of the group’s interest-bearing financial instruments was:
2016
R’000
2015
R’000
Fixed rate instruments
Financial liabilities
Borrowings
(3 128 722)
(3 702 934)
Derivative instruments in designated hedge accounting relationships
–
(3 725)
Variable rate instruments
Financial assets
Cash and cash equivalents
5 509 505
3 632 608
Financial liabilities
Borrowings
(4 059 432)
(2 652 611)
Puttable non-controlling interest liabilities
(1 168 921)
(913 638)
Overdrafts
–
(4)
The group’s exposure to interest rates on financial assets and liabilities are detailed in the various notes within the financial statements.
The variable rates are influenced by movements in the prime borrowing rates.
Bidcorp Limited Annual integrated report 2016 |
Page 111
Financial overview