Agribel Annual Financial Review | Page 53

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
GROUP 2020
Interest rate risk
Notes
Total current assets
R ' m
Non-interestearning assets R ' m
Interestearning assets R ' m
Property , plant and equipment
2
2 013
2 013
-
Investment properties
3
1
1
-
Right-of-use assets
4
37
37
-
Goodwill and intangible assets
5
41
41
-
Investment in joint ventures and associates
8
216
216
-
Other non-current assets
7.1.1 ; 18.2
542
542
-
Inventory
10
882
882
-
Trade and other receivables ( current )
11
3 735
-
3 735
Loans and other receivables ( non-current )
9
1 226
-
1 226
Inventory held to satisfy firm sales
12
105
105
-
Cash and short-term deposits
7.1.4
174
-
174
Other current assets
7.1.2 ; 20.1
93
1
92
Total
9 065
3 838
5 227
Interest-bearing liabilities
4 ; 7.2.1 ; 7.2.2 ; 7.2.3 ; 7.2.4
( 4 367 )
Net exposure to interest rate risk ( limited to Rnil )
-
Interest costs are naturally hedged in instances where interest-earning assets exceed interest-bearing liabilities . Interest rates are hedged by means of financial instruments in times of high volatility or when interest-bearing liabilities significantly exceed interest-earning assets .
Sensitivity of interest rates The potential impact of interest rate changes on finance costs is illustrated below :
GROUP
2021
2020
Increase / ( decrease )
%
( Increase )/ decrease in interest expenses before tax
R ' m
Increase / ( decrease )
%
( Increase )/ decrease in interest expenses before tax
R ' m
Commodity financing
2 %
( 1.0 )
2 %
( 0.8 )
1 %
( 0.5 )
1 %
( 0.4 )
( 1 )%
0.5
( 1 )%
0.4
( 2 )%
1.0
( 2 )%
0.8
Short-term debt
2 %
( 87.6 )
2 %
( 71.1 )
1 %
( 43.8 )
1 %
( 35.6 )
( 1 )%
43.8
( 1 )%
35.6
( 2 )%
87.6
( 2 )%
71.1
Long-term debt
2 %
( 1.8 )
2 %
( 13.4 )
1 %
( 0.9 )
1 %
( 6.7 )
( 1 )%
0.9
( 1 )%
6.7
( 2 )%
1.8
( 2 )%
13.4
Agribel Holdings Limited Reg nr : 1996 / 017629 / 06 AGRIBEL ANNUAL FINANCIAL REVIEW 2021
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