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AFRICAN DAWN ANNUAL REPORT 2020
Notes to the Financial Statements continued
Annual Financial Statements For the year ended 29 February 2020
Prescribed offers
2020 R’000 Group
Salary Total
DD Breedt 857 857
2019 R’000 Group
Salary Total
DD Breedt 857 857
28. Risk Management
Risk Management definitions
For the purposes of risk management, the following definitions are applicable:
* Credit risk - the risk that the Group may not recover amounts it is owed (debit balances - receivables, bank, debit loans).
* Liquidity risk - the risk that the Group may not be able to pay an amount as it becomes due.
* Interest rate risk
- Cash flow interest rate risk – the risk that the cash flows will change because the interest rate has changed.
Concentrations of risk - There are no concentrations of risk.
Exposure
The Group is exposed to credit risk, interest rate risk and liquidity risk as follows:
Financial instrument Cashflow
interest
Credit Risk Liquidity risk rate risk
Loans to Group companies Yes No No
Trade receivables Yes No Yes
Other receivables Yes No No
Cash and cash equivalents Yes No Yes
Borrowings No Yes Yes
Loans from Group companies No Yes No
Loans from directors No Yes No
Trade payables No Yes No
Management of risk
Cashflow is monitored very closely on a continuous basis.
Credit risk is very closely managed in accordance with the basis as disclosed in the accounting policy.
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