Page 298 - SAMRC Annual Report 2023-24

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
NOTES TO THE ANNUAL FINANCIAL STATEMENTS

(CONTINUED)

42. Risk management (continued)

Market risk
Interest rate risk
In respect of income-earning financial assets interest-bearing financial liabilities, the table below indicates their average
effective interest rates at the reporting date and the periods in which they mature.

Cash flow interest rate risk
DUE IN DUE IN DUE IN DUE
CURRENT DUE IN ONE TO TWO TO THREE TO AFTER
INTEREST LESS THAN TWO THREE FOUR FIVE
FINANCIAL INSTRUMENT RATE A YEAR YEARS YEARS YEARS YEARS
Trade and other receivables –
normal credit terms 11.75% 89,638,315 – – – –
Cash in current banking institutions –% 522,082,612 – – – –
Trade and other payables –
extended credit terms 11.75% 115,637,520 – – – –

Foreign exchange risk
The entity does not hedge foreign exchange fluctuations.

Exchange rates on 31 March 2024 (31 March 2023) used for conversion of foreign items were:
USD – ABSA buying 18.9214 17.7803
USD – ABSA selling 18.9364 17.8051
GBP – ABSA buying 23.8123 21.9284
GBP – ABSA selling 23.8388 21.9662
EURO – ABSA selling 20.3798 –
NAIRA – ABSA selling 70.8833 –

The entity reviews its foreign currency exposure, including commitments on an ongoing basis. The entity has CFC accounts
for specific foreign income grants whose payments are mainly made in foreign currency. The risk for currency fluctuations
is eliminated by maintaining the CFC accounts for these grants.

43. Contingencies

Contingent liabilities
There is a high court claim by a research trial participant. The matter will be defended. At this stage, the outcome of the
case is unknown and it is not practical to estimate the financial effect of the claim.

In the previous reporting period there was a high court claim by an ex-employee who passed-on shortly after instituting
the claim that the SAMRC disputes. The Board has agreed to a mediation process to resolve the dispute and the SAMRC
and the heir of the estate agreed to appoint a mediator. However, before a mediator could be appointed the heirs directly
approached the SAMRC to negotiate a settlement. Negotiations were finalized during the reporting period. The SAMRC
and the parties agreed to settle, a provision has been raised for the acceptance of no liability settlement amount.

The SAMRC will be applying to National Treasury to retain the accumulated surplus funds of R412,948,611. If approved the
accumulated surplus funds will not have to be paid to National Treasury.

296 SAMRC ANNUAL REPOR T 2023-24