Senwesbel Consolidated Financial Statements | Page 61

24.1.1.4 Interest rate risk
Funding
The group is naturally hedged against fluctuating interest rates to a large extent since interest-bearing
debt is mainly utilised for assets earning interest at fluctuating rates.
GROUP
2020
NON-INTEREST-
INTEREST-
ASSETS
EARNING ASSETS
EARNING ASSETS
Interest rate risk
NOTES
R’m
R’m
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 8.1 185 185 -
Investment in associate 8.2 31 31 -
Other non-current assets 7.1.1, 7.1.2,18.2 542 542 -
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 7.1.3 174 - 174
Other current assets 7.1.2, 20.1 93 1 92
Total 9 065 3 838 5 227
Interest-bearing liabilities 7.2 (4 367)
Net exposure to interest rate risk (limited to Rnil) -
GROUP
2019
NON-INTEREST-
INTEREST-
ASSETS
EARNING ASSETS
EARNING ASSETS
Interest rate risk
NOTES
R’m
R’m
R’m
Property, plant and equipment 2 1 438 1 438 -
Goodwill 5 9 9 -
Investment in joint ventures 8.1 227 227 -
Investment in associate 8.2 28 28 -
Other non-current assets 7.1.1, 7.1.2, 18.2 35 35 -
Inventory 10 609 609 -
Trade and other receivables
(current)
11 2 881 - 2 881
Loans and other receivables
(non-current)
9 1 204 - 1 204
Inventory held to satisfy firm
sales
12 234 234 -
Cash and short-term deposits 7.1.3 31 - 31
Other current assets 7.1.2, 20.1, 29 87 2 85
Total 6 783 2 582 4 201
Interest-bearing liabilities 7.2 (2 914)
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.
Senwesbel Limited Reg no: 1996/017629/06 SENWESBEL ANNUAL FINANCIAL STATEMENTS 2020 60