Agribel Annual Financial Review | Page 56

AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
24.1.3 Liquidity risk
The group monitors its liquidity risk by means of a cash flow planning and security model .
The group takes into account the maturity dates of its various assets and funds its activities by obtaining a balance between the optimal financing mechanism and the different financing products , which include bank overdrafts , short-term loans , commodity finance and other creditors . These are the remaining undiscounted cash-flows . The different debt expiry dates are as follows :
GROUP
Financial liabilities - 2021
Total R ' m
Due within 1 year
R ' m
Due within 1-5 years
R ' m
Due after 5 years
R ' m
Other financial liabilities
327
-
-
327
JD Implemente ( Pty ) Ltd loans
3
-
1
2
KLK Landbou Ltd loans
18
6
12
-
Agrinet ( Pty ) Ltd loans
93
14
79
-
Lease liabilities
62
20
42
-
Interest-bearing loans ( short-term portion )
3 752
3 752
-
-
Interest on interest-bearing loans ( short term portion )
140
140
-
-
Interest-bearing loans ( long-term portion )
287
-
287
-
Interest on interest-bearing loans ( long-term portion )
57
-
57
-
Hinterland Holdings ( Pty ) Ltd loan
197
197
-
-
Bank overdrafts
688
688
-
-
Trade and other payables and contract liabilities
1 885
1 885
-
-
Derivative financial instruments , tax payable , incentive bonuses , provisions and other
loans payable
371
371
-
-
Total liabilities , including interest payable
7 880
7 073
478
329
Total R ' m
Due within 1 year
R ' m
Due within 1-5 years
R ' m
Due after
Interest-bearing loans ( long-term portion ) 650 - 650 - Interest on interest-bearing loans ( long term portion ) 37 34 3 - Other financial liabilities 35 - - 35 JD Implemente ( Pty ) Ltd loan from Tomlinson Family Trust 2 - - 2 KLK Landbou Ltd loans 24 6 18 - Lease liabilities 40 10 26 4 Interest-bearing loans ( short-term portion ) 3 461 3 461 - - Interest on interest-bearing loans ( short term portion ) 122 122 - - Bank overdraft 129 129 - - Trade and other payables and contract liabilities 800 800 - - Derivative financial instruments , tax payable , incentive bonuses , provisions and other
GROUP Financial liabilities - 2020
5 years
financial liabilities
192
192
-
-
Total liabilities , including interest payable
5 492
4 754
697
41
R ' m
24.1.4 Capital maintenance guidelines
Capital includes equity attributable to the equity holders of the parent . The group maintains its own capital ratio within the following guidelines :
GROUP
2021
2020
Capital maintenance
Own capital ratio
Own capital ratio
Total assets
11 190
9 065
Equity
3 498
3 401
Liabilities
7 692
5 664
Total equity and liabilities
11 190
9 065
Calculated rate (%)
31 %
39 %
Set target band (%)
35 % -45%
35 % -45%
The own capital ratio of 31 % is lower than the internal set target of 35 % - 45 %, but still above the minimum requirement of 30 %. This is mainly due
to high inventory and debtor levels at year end . The ratio returned to acceptable levels shortly after year end .
54 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06