Page 356 - SAMRC AnnualReport 2025-26

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
(CONTINUED)

46. Financial Instruments – Risk Management and other disclosures
(continued)

Cash flow interest rate risk

DUE IN DUE IN DUE IN DUE
DUE IN ONE TO TWO TO THREE TO AFTER
CURRENT LESS THAN TWO THREE FOUR FIVE
INTEREST A YEAR YEARS YEARS YEARS YEARS
FINANCIAL INSTRUMENT RATE R R R R R
Trade and other receivables –
normal credit terms 10.25% 47,856,612 – – – –
Receivables from non-exchange
– normal credit terms 10.25% 65,372,836 – – – –
Cash in current banking
institutions –% 952,763,417 – – – –
Trade and other payables –
normal credit terms 10.25% 105,423,362 – – – –
Payables from non-exchange 10.25% 64,996,908 – – – –

Foreign exchange risk
The SAMRC operates internationally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US dollar; GBP and the Euro. SAMRC receives substantial funding from the
UK; USA and Europe, as a result its statement of financial position can be affected by movements in the US dollar;
GBP and Euro. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities
and net investments. Due to uncertainties in respect of when cash will be received from overseas, SAMRC does not
hedge foreign exchange fluctuations.
Approximately 8% of SAMRC’s Trade and funder/grant debtors (R7,339,595) are exposed to currency compared to
12% last year (R11,299,635).

The entity is exposed to foreign currency risk as it purchases laboratory consumables and equipment and makes
payments to research collaborators.
Exchange rates on 31 March 2026 (31 March 2025) used for conversion of foreign items were:

31 MARCH 31 MARCH
2026 2025
R R
USD – ABSA buying 16.9298 18.3032
USD – ABSA selling 16.9571 18.3203
GBP – ABSA buying 22.3846 23.6441
GBP – ABSA selling 22.4325 23.6680
EURO – ABSA buying 19.5573 17.7986
EURO – ABSA selling 19.5939 19.8189

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.

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